Tacit Collusion Is Difficult to Achieve in Practice

question 116

Multiple Choice

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.

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Definitions:

Republican Party

An alternative name for Republicans, emphasizing its role as one of the two major political parties in the United States, also known as the GOP (Grand Old Party).

Jay's Treaty

A 1794 agreement between the United States and Great Britain that sought to resolve outstanding issues from the Treaty of Paris (1783) and facilitated ten years of peaceful trade between the two nations.

Bank of the United States

A central bank chartered by the United States Congress at two different periods, the first from 1791 to 1811 and the second from 1816 to 1836, to handle the government's transactions.

Edmond-Charles Genet

A French diplomat who served as the French minister to the United States during the French Revolution, known for his efforts to enlist American support for France’s wars against European monarchies.