When firms in a particular industry informally agree to charge the same price as the largest firm in that industry,it is called:
A)satisfying.
B)price extortion.
C)overt collusion.
D)tacit collusion.

Question

Quizplus · Accepted Answer

This is an example of tacit collusion, as firms are not formally agreeing to fix prices but are instead following the lead of the largest firm in the industry. It is still anticompetitive behavior, as it limits price competition among firms.

When Firms in a Particular Industry Informally Agree to Charge