Tacit collusion is likely to occur when firms have different market shares.

Name: Tacit collusion is likely to occur when firms have different market shares.
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Tacit collusion is more likely to occur when firms have similar market shares, as it is easier for them to coordinate their actions and reach agreements without communication. When firms have different market shares, the larger firms may have less incentive to collude as they have more to gain by competing aggressively.

Tacit Collusion Is Likely to Occur When Firms Have Different