Which statement is TRUE?
A) Once an industry has achieved tacit collusion,producers have an incentive to raise prices.
B) Tacit collusion is legal in Canada.
C) The fact that one firm changes its price shortly after another firm does is proof of tacit collusion.
D) It is difficult to determine how much tacit collusion exists in a particular industry;hence,tacit collusion remains hard to prosecute in Canada.

Question

Quizplus · Accepted Answer

Tacit collusion is not illegal in Canada, but it becomes illegal if it results in anti-competitive behavior. The fact that one firm changes its price shortly after another firm does not necessarily mean that tacit collusion is present, as it could be due to other factors such as market conditions or interdependent decision-making. It is difficult to prove the existence of tacit collusion, and therefore it remains hard to prosecute.

Which Statement Is TRUE