Informal collusion to restrict output and increase prices is sometimes referred to as a

A) merger.
B) cartel.
C) tacit understanding.
D) kinked-demand oligopoly.

Tacit Understanding

An implicit agreement or understanding that is not formally expressed or written, but is assumed to be shared among the parties involved.

Informal Collusion

A scenario where businesses unofficially agree to certain practices, such as price-setting or market-sharing, without formal agreement, often to reduce competition.

Cartel

A cartel refers to an association of independent businesses or countries that collaborate to manipulate prices and limit competition for certain goods or services.