Tacit collusion is difficult to achieve in practice:
A)the larger the number of firms in the industry.
B)the fewer the number of products being sold.
C)the more similar the marginal costs of each firm.
D)if customers have little or no bargaining power.

Question

Quizplus · Accepted Answer

The larger the number of firms in the industry, the more difficult it is for firms to coordinate and reach agreements on prices and output. This makes tacit collusion less likely to occur.

Tacit Collusion Is Difficult to Achieve in Practice