It is more likely for tacit collusion to occur in the _________ market compared to the________ _ market.

Question

Quizplus · Accepted Answer

Tacit collusion occurs more easily in industries with high concentration, high barriers to entry, and few competitors. The commercial airline market fits this description better than the fast food market, as it has a limited number of dominant companies and high entry barriers such as investment costs, government regulation, and limited airport slots. In comparison, the fast food industry has a larger number of competitors and lower entry barriers, making it less likely for tacit collusion to occur.

It Is More Likely for Tacit Collusion to Occur in the _________