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Eight major firms in the rubber products industry are located in the same town. Company managers from these firms all socialize at the same two private clubs and attend the same charity events in town. This suggests that the ________ structure of the rubber industry in this town can create opportunities for tacit collusion.

Respuesta :

The structure of the rubber industry which allows for tacit collusion is an oligopoly.

What is an oligopoly?

An oligopoly is when there are few large firms operating in an industry. An example of an oligopoly is the Organization of the Petroleum Exporting Countries.

What are the characteristics of Oligopolies?

  • There are high barriers to entry or exit of firms into the industry.
  • The demand curve is downward sloping demand
  • Firms can set the price for their goods or services.

A cartel is when two or more producers of a certain good or service come together to regulate either the price or the quantity supplied of their goods.

To learn more about oligopolies, please check: https://brainly.com/question/26130879

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