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In the market for bank credit a large bank sometimes announces a change in interest rates. After the changes in interest rates are announced, other banks in the industry usually react by changing their rates in the same way. This is an example of__________.
A. a cartel.
B. monopolistic competition.
C. implicit collusion.
D. the kinked demand curve model

Respuesta :

jepessoa

Answer:

C) implicit collusion

Explanation:

Implicit collusion refers to a situation where competitor firms act in the same manner to try to control the market (price, supply or demand) of a good or service. Supposedly since the firms compete against each other, so they will try to make the customers believe that the similarities are coincidences or that the actions were caused by some external market force.

For example, Coke increases it price and by coincidence Pepsi also increases its price.

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