There are four ice cream shops on a small tourist island.The following table shows the quantity of ice cream cones that each firm produces in a typical year and the price that each firm currently charges for each ice cream cone it sells.An economist might suspect ________ collusion occurring in this market where ________ is the price leader and all other firms set price to match the price leader.

A) explicit; Royal Scoop
B) explicit; Cream Emporium
C) illegal; Cream Emporium
D) tacit; Royal Scoop
E) tacit; Cream Emporium

Question

There are four ice cream shops on a small tourist island.The following table shows the quantity of ice cream cones that each firm produces in a typical year and the price that each firm currently charges for each ice cream cone it sells.An economist might suspect ________ collusion occurring in this market where ________ is the price leader and all other firms set price to match the price leader.

A) explicit; Royal Scoop 
B) explicit; Cream Emporium 
C) illegal; Cream Emporium 
D) tacit; Royal Scoop 
E) tacit; Cream Emporium

Quizplus · Accepted Answer

The Answer of There are four ice cream shops on a small tourist island.The following table shows the quantity of ice cream cones that each firm produces in a typical year and the price that each firm currently charges for each ice cream cone it sells.An economist might suspect ________ collusion occurring in this market where ________ is the price leader and all other firms set price to match the price leader.

A) explicit; Royal Scoop 
B) explicit; Cream Emporium 
C) illegal; Cream Emporium 
D) tacit; Royal Scoop 
E) tacit; Cream Emporium

There Are Four Ice Cream Shops on a Small Tourist