The ability of firms to produce for inventory and to create order backlogs helps ________ tacit collusion.
A)avoid
B)ramp down
C)facilitate
D)prevent

Question

Quizplus · Accepted Answer

The ability to produce for inventory and create order backlogs can help facilitate tacit collusion by allowing firms to reduce output and increase prices without facing immediate competition. This reduces price competition and allows firms to maintain higher prices in the market, creating a more stable and profitable industry.

The Ability of Firms to Produce for Inventory and to Create