The ability of firms to produce for inventory and to create order backlogs helps reduce tacit collusion.

Name: The ability of firms to produce for inventory and to create order backlogs helps reduce tacit collusion.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The ability of firms to produce for inventory and to create order backlogs actually facilitates tacit collusion by making market conditions more predictable and allowing firms to adjust their production and pricing strategies in a coordinated manner without explicit communication.

The Ability of Firms to Produce for Inventory and to Create