Answer the following statements true (T) or false (F)

1. Learning race dynamics are particularly common in relations among large, well-established firms.
2. In network industries with increasing returns to scale where standards are unimportant, strategic alliances can be used to create a more favorable competitive environment.
3. Explicit collusion exists when firms directly communicate with each other to coordinate their levels of production or their prices and is legal in most countries.
4. Tacit collusion exists when firms coordinate their pricing decisions not by directly communicating with each other but by exchanging signals with other firms about their intent to cooperate.
5. A learning race exists in a strategic alliance when both parties seek to learn from each other.

1. F
2. F
3. F
4. T
5. T