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Question
There are four ice cream shops on a small tourist island. The following table shows the quantity of ice cream cones that each firm produces in a typical year and the price that each firm currently charges for each ice cream cone it sells. An economist might suspect ________ collusion occurring in this market where ________ is the price leader and all other firms set price to match the price leader.
| Firm | Quantity | Price |
| Black Bear Cones | 1,383 | $2.85 |
| Frozen Treat | 2,410 | 2.89 |
| Cream Emporium | 27,377 | 2.99 |
| Royal Scoop | 670 | 3.05 |
a. explicit; Royal Scoop
b. explicit; Cream Emporium
c. illegal; Cream Emporium
d. tacit; Royal Scoop
e. tacit; Cream Emporium
Answer
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