Answer the following statements true (T) or false (F)

1) Tacit collusion is more likely to occur in the commercial airline market than the fast food market.
2) Price visibility can work both for and against tacit collusion.
3) When firms have a tacit collusion agreement, if prices are highly visible, this decreases the cost of cheating.
4) The primary function of meet-the-competition clauses is to win customers.
5) Most-favored-customer clauses can help support tacit collusion.


1) TRUE
2) TRUE
3) FALSE
4) FALSE
5) TRUE

Economics

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