Tacit collusion tends to be least used as a business-level, competition-reducing strategy in highly concentrated industries such as airlines and breakfast cereals even though it results in higher prices for consumers.

Question

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Tacit collusion is more likely to occur in highly concentrated industries as there are fewer competitors and it is easier for firms to coordinate their actions without explicit communication. This often leads to higher prices for consumers.

Tacit Collusion Tends to Be Least Used as a Business-Level