________ exist(s) when firms coordinate their production and pricing decisions not by directly communicating with each other but by exchanging signals with other firms about their intent to cooperate.

Question

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Tacit collusion exists when firms coordinate their production and pricing decisions without directly communicating with each other. It is achieved by exchanging signals with other firms about their intent to cooperate. This form of collusion is often difficult to detect and can be illegal under antitrust laws.

________ Exist(s) When Firms Coordinate Their Production and Pricing Decisions