Question

An agreement between Nike and Adidas to raise prices of the track shoes that each company produces by 50 percent is an example of a collusive agreement, and economists generally agree that:

Answer 1

Step-by-step explanation:

Economists generally agree that this agreement is not in the best interest of society because the price of track shoes is way higher than the marginal cost. Meaning that the company is basically taking advantage of the potential customers since they are profiting massively by overpricing the shoes. The shoes are not worth that price and the companies can easily drop the price and still make a good profit but instead are raising prices and taking advantage of potential customers.