Firms that practice tacit collusion may receive some of the benefits of a cartel without explicitly organizing a group of firms.

Name: Firms that practice tacit collusion may receive some of the benefits of a cartel without explicitly organizing a group of firms.
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Question

Quizplus · Accepted Answer

Tacit collusion occurs when firms in an industry indirectly coordinate their actions without explicitly agreeing to do so. This can result in higher prices and profits, similar to a formal cartel.

Firms That Practice Tacit Collusion May Receive Some of the Benefits