Which of the following factors are likely to support the conclusion that there is tacit collusion in

Question:

Which of the following factors are likely to support the

conclusion that there is tacit collusion in this industry? Which

are not? Explain.

a. There has been considerable variation in the market shares

of the firms in the industry over time.

b. Firms in the industry build into their products unnecessary

features that make it hard for consumers to switch from one

company’s products to another company’s products.

c. Firms meet yearly to discuss their annual sales forecasts.

d. Firms tend to adjust their prices upward at the same time.

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Essentials Of Economics

ISBN: 9781319221317

5th Edition

Authors: Paul Krugman, Robin Wells

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