________ collusion exists 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

Quizplus · Accepted Answer

Tacit collusion implies indirect coordination among firms, allowing them to communicate without direct communication. It can be achieved through various means, such as price signaling or observing the behavior of other firms in the market. Explicit collusion would require direct communication and agreements between firms, while real and virtual collusion are not recognized economic terms.

________ Collusion Exists When Firms Coordinate Their Production and Pricing