A situation in which each firm acts in order to raise the profits of its rivals (and of itself) without any formal agreement between firms is known as tacit collusion.False

Question

Quizplus · Accepted Answer

This statement is true. Tacit collusion occurs when firms implicitly coordinate their actions without any formal agreement to do so, often by following industry norms or anticipating the reactions of their rivals. The ultimate goal of tacit collusion is to raise prices and increase profits for all firms in the market.

A Situation in Which Each Firm Acts in Order to Raise