Which of the following is true regarding tacit collusion?

Question

Quizplus · Accepted Answer

Tacit collusion is more likely to occur when the price elasticity of demand is small because firms can raise prices without losing a significant number of customers, making collusion more profitable. It does not involve a formal agreement, is not explicitly illegal like explicit collusion, and is less likely when barriers to entry are low because new entrants can disrupt the collusive arrangement.

Which of the Following Is True Regarding Tacit Collusion