If rival solar roof panel manufacturers in Ottawa limit production and _____ prices in a way that increases their profits without meeting with one another in a formal way,they are engaging in _____ collusion.

Question

Quizplus · Accepted Answer

If rival solar roof panel manufacturers in Ottawa limit production and raise prices in a way that increases their profits without meeting with one another in a formal way, they are engaging in tacit collusion. This is because they are indirectly coordinating their behavior to increase their profits without explicitly discussing it. Choice A and C are incorrect because they involve lowering prices, which would not increase profits. Choice D is incorrect because it involves explicit collusion, which would involve direct communication and agreement between the rival manufacturers.

If Rival Solar Roof Panel Manufacturers in Ottawa Limit Production