When firms cooperate without an explicit agreement,they are engaging in
A)explicit collusion
B)tacit collusion
C)reverse collusion
D)inclusion
E)rent seeking

Question

Quizplus · Accepted Answer

Tacit collusion is a type of cooperation among firms without an explicit agreement or communication. In such cases, firms may implicitly agree to not compete with each other, leading to similar market outcomes as explicit collusion. The other options are not relevant to the scenario.

When Firms Cooperate Without an Explicit Agreement,they Are Engaging in