According to Barney,under which condition would tacit collusion most likely be successful?
A) There is a large number of identifiable competitors.
B) Costs vary among firms.
C) One firm tends to act as the price leader.
D) Sales are characterized by a low frequency of large orders.
E) There are low barriers to entry in the industry.

Question

Quizplus · Accepted Answer

When one firm tends to act as the price leader, it is easier for other firms to follow its lead and coordinate their pricing decisions. This creates a situation where tacit collusion can be more successful.

According to Barney,under Which Condition Would Tacit Collusion Most Likely