Unwritten or unspoken understandings through which firms restrict competition are called:
A)cartel agreements.
B)oligopoly agreements.
C)overt collusion.
D)tacit collusion.

Question

Quizplus · Accepted Answer

Tacit collusion refers to the unspoken or unwritten understandings between firms to restrict competition without any explicit agreement or communication. It involves firms following each other's pricing policies or avoiding aggressive competition in order to maintain higher prices and profits. Tacit collusion can be difficult to prove or prosecute since it relies on behavioral patterns rather than explicit agreements.

Unwritten or Unspoken Understandings Through Which Firms Restrict Competition Are