Existence of industry ________ creates opportunities for tacit collusion.
A)flag bearers
B)price leaders
C)differentiators
D)pioneers

Question

Quizplus · Accepted Answer

Price leaders are those firms in an industry that have significant market power and can influence prices. Their actions and pricing decisions can signal to other firms in the industry, creating opportunities for tacit collusion, where firms implicitly coordinate their prices and avoid price competition. The other options, flag bearers, differentiators, and pioneers, do not necessarily create the same opportunities for tacit collusion.

Existence of Industry ________ Creates Opportunities for Tacit Collusion