Which of the following are least likely to result in collusion?
A) High concentration ratio
B) Heterogeneous products
C) High entry barriers
D) High market commonality

Question

Quizplus · Accepted Answer

Collusion is less likely to occur when products are heterogeneous as firms will have less agreement on prices, output, and other competitive strategies. High concentration ratio (A), high entry barriers (C), and high market commonality (D) can make collusion more likely by reducing competition and increasing the ability of firms to coordinate their actions.

Which of the Following Are Least Likely to Result in Collusion