Which Factor Would Make Tacit Collusion Among Firms in a Market

question 8

Multiple Choice

Which factor would make tacit collusion among firms in a market easier?

• A) an increase in the number of firms.
• B) a decrease in the probability the market will continue into future periods.
• C) a decrease in the interest rate.
• D) none of these.

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Definitions:

Importer

An individual, company, or entity that buys goods or services from a foreign country for sale within their own country.

Swiss Francs

Swiss Francs are the currency of Switzerland, known for their stability and regarded as a safe-haven currency in times of financial uncertainty.

Pound Sterling

The currency of the United Kingdom, commonly known as the pound and symbolized as £.

Equilibrium

A state of balance within a system where forces or influences are equal and opposing, leading to no net change over time.