Which of the following is an example of tacit collusion?
A)OPEC
B)copper cartel
C)price leadership
D)government franchise granted to a utility

Question

Which of the following is an example of tacit collusion?
A)OPEC 
B)copper cartel 
C)price leadership 
D)government franchise granted to a utility

Quizplus · Accepted Answer

Tacit collusion is when firms indirectly coordinate their pricing behavior without any direct communication or agreement. Price leadership is an example of tacit collusion, as one firm sets the price and other firms in the industry follow suit without any explicit agreement or communication. OPEC and the copper cartel are examples of explicit collusions, where firms openly coordinate their pricing behavior. A government franchise granted to a utility is not an example of collusion at all.

Which of the Following Is an Example of Tacit Collusion