Tacit Collusion Is Not Explicitly Illegal in the United States

question 72

True/False

Tacit collusion is not explicitly illegal in the United States even though it results in higher prices for consumers.

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Definitions:

Purely Competitive Seller

A seller in a market where there are many sellers and buyers, the product is standardized, and no single seller can influence the market price.

Shut Down

A temporary closure of a business or operation.

Marginal Cost

The expenditure required to produce one more unit of a product or service.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a particular price over a given period of time.