Tacit cooperation is only a viable strategy when
A) an industry is perfectly competitive.
B) an industry is heterogeneous with respect to the products it sells and their cost structure.
C) there is a strong market share leader in the industry.
D) there are low entry barriers in the industry.

Question

Quizplus · Accepted Answer

Tacit cooperation is more viable when there is a strong market share leader, as this leader can influence the behavior of other firms and maintain stability in pricing and output decisions without explicit agreements.

Tacit Cooperation Is Only a Viable Strategy When