Which of the following is NOT an industry attribute that facilitates the development and maintenance of tacit collusion?
A)Small number of firms
B)Product homogeneity
C)Cost homogeneity
D)Exit barriers

Question

Quizplus · Accepted Answer

Exit barriers do not facilitate tacit collusion. Instead, they can make the market less competitive by making it difficult for firms to leave the industry, but they do not directly encourage firms to coordinate their actions or prices in a collusive manner. Tacit collusion is more directly facilitated by factors that make it easier for firms to monitor and match each other's actions, such as a small number of firms, product homogeneity, and cost homogeneity.

Which of the Following Is NOT an Industry Attribute That