Eight major firms in the rubber products industry are located in the same town.Company managers from these firms all socialize at the same two private clubs and attend the same charity events in town.This suggests that the ________ structure of the rubber industry in this town can create opportunities for tacit collusion.

Question

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The fact that managers from eight major firms in the rubber products industry in the same town socialize at the same two private clubs and attend the same charity events in town suggests a social structure. This social structure may create opportunities for tacit collusion among the firms. The physical structure, cost structure, and competitive structure are not relevant to this context.

Eight Major Firms in the Rubber Products Industry Are Located