question archive Suppose that an industry is characterized by a few firms and tacit collusion

Suppose that an industry is characterized by a few firms and tacit collusion

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Suppose that an industry is characterized by a few firms and tacit collusion. We would expect that: a. Monopoly pricing will prevail and large profits will be received by firms. b. One dominant firm will set prices and others will follow. c. One firm will offer a price discount if any new entrant tries to undercut them and other incumbents will follow. d. All of the above.

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