Omega,Inc.signals that if parties cheat on collusive agreements,it will decrease prices more or increase output more than would have otherwise been the case.Omega,Inc.is sending a(n)________ signal.
A)explicit
B)tacit
C)tough
D)soft

Question

Quizplus · Accepted Answer

Omega, Inc. is sending a "tough" signal by indicating it will punish parties that cheat on collusive agreements by taking aggressive actions such as decreasing prices or increasing output more than would have otherwise been the case. This is a strategy to deter cheating and maintain the agreement.

Omega,IncSignals That If Parties Cheat on Collusive Agreements,it Will Decrease