Homogeneity of economic costs enhances the opportunities to implement tacit collusion.

Question

Quizplus · Accepted Answer

Homogeneity of economic costs means that all firms face the same costs, making it easier for them to coordinate their pricing behavior. This similarity in costs increases the potential for tacit collusion among firms, where they can signal each other to maintain high prices without explicitly coordinating. Therefore, the statement is true.

Homogeneity of Economic Costs Enhances the Opportunities to Implement Tacit