The difference between explicit and tacit collusion is the degree to which
A)the two firms are alike.
B)the two firms serve the same markets.
C)the products of the two firms are alike.
D)the two firms consult each other.
E)outside influences affect the firms.

Question

Quizplus · Accepted Answer

Explicit collusion involves direct communication and agreement between the two firms to coordinate their actions. Tacit collusion, on the other hand, occurs when firms engage in similar pricing or other behaviors without having explicitly communicated or made a formal agreement. Therefore, the degree to which the two firms consult each other determines whether it is explicit or tacit collusion.

The Difference Between Explicit and Tacit Collusion Is the Degree