Unwritten or unspoken understandings through which firms collude to restrict competition are called:
A) cartelization.
B) oligopolization.
C) overt collusion.
D) tacit collusion.

Question

Quizplus · Accepted Answer

Unwritten or unspoken understandings through which firms collude to restrict competition are called tacit collusion. This type of collusion is not explicitly discussed or agreed upon, and can be difficult to prove. It often involves firms engaging in similar behavior without direct communication, such as setting prices or output levels to maintain high profits for all firms in the market.

Unwritten or Unspoken Understandings Through Which Firms Collude to Restrict