________ is a competition-reducing collusive strategy in which firms avoid competitive attacks against those rivals they meet in multiple markets.
A)Explicit collusion
B)Tacit collusion
C)Multi-market contact
D)Mutual forbearance

Question

Quizplus · Accepted Answer

Mutual forbearance is a strategy where firms choose not to attack their rivals in multiple markets in order to reduce competition. This type of strategy is not explicitly agreed upon, but rather emerges from the behavior of the firms involved. It is a form of tacit collusion, where firms act in ways that reduce competition without explicitly coordinating with each other. Therefore, option D is the correct answer.

________ Is a Competition-Reducing Collusive Strategy in Which Firms Avoid