In general,firms can send one of two signals to collusion partners who may cheat on their cooperative agreements: a ________ signal or a ________ signal.
A)explicit; implicit
B)explicit; tacit
C)visual; verbal
D)tough; soft

Question

Quizplus · Accepted Answer

Firms can send either a tough signal or a soft signal to collusion partners who may cheat on their cooperative agreements. A tough signal indicates a firm stance against cheating, while a soft signal suggests a more lenient or cooperative approach to maintaining the agreement.

In General,firms Can Send One of Two Signals to Collusion