Tacit cooperation is only a viable strategy when an industry is perfectly competitive.

Question

Quizplus · Accepted Answer

Tacit cooperation involves informal agreements between competitors to limit competition or coordinate behavior. This is illegal in many countries under antitrust laws. Therefore, it is not a viable strategy in any industry. Even in perfectly competitive industries, tacit cooperation would lead to inefficiencies and higher prices for consumers.

Tacit Cooperation Is Only a Viable Strategy When an Industry