Prices above the competitive level in the branded breakfast cereal market suggest that these firms are engaging in ____.
A) excessive cooperation.
B) joint ventures.
C) tacit collusion.
D) standard strategic alliances.

Question

Quizplus · Accepted Answer

Prices above the competitive level in the branded breakfast cereal market suggest that these firms are engaging in tacit collusion. Tacit collusion occurs when firms in a market coordinate their behavior without explicit communication, often resulting in higher prices for consumers.

Prices Above the Competitive Level in the Branded Breakfast Cereal