Tacit collusion is more likely to be a concern with horizontal alliances. vertical alliances. international alliances of any kind compared with domestic alliances. U. S. alliances with companies in less- developed countries.

horizontal alliances

Explanation:

A horizontal alliance is a term that describes a form of arrangements or partnership between businesses that conduct as competitors in the exact area.

In other words, competitors work in unison to enhance their strategy in the market.

On the other hand, Tacit Collusion occurs when firms avoid actions that are likely to require or demand a response from another firm often a competitor. For example, when a firm avoids the opportunity to price cut an opposition due to the fact that, the opposition may retaliate

Hence, Tacit collusion is more likely to be a concern with HORIZONTAL ALLIANCE

answer; is usually (less than) the socially optimal level of consumption;

the correct choice is a