Consider the three largest cell- phone service providers in Canada

Question

Consider the three largest cell- phone service providers in Canada - Bell,Telus,and Rogers.If we observe that all three companies increase their monthly service fees simultaneously,we might conclude that

Quizplus · Accepted Answer

When all three companies increase their monthly service fees simultaneously, it suggests that there is tacit collusion among these firms. Tacit collusion occurs when firms coordinate their pricing decisions without explicit communication, and this behavior is often observed in oligopolistic markets where there are few dominant players. By raising prices together, these firms can maintain their market power and profitability, at the expense of consumers who have limited alternatives to choose from.