Which of the following have greater incentives to collude and to form cartels in an effort to achieve monopoly-like profits?
A) monopolists
B) workers in a competitive labor market
C) monopolistic competitors
D) firms in a perfectly competitive market
E) oligopolists

Question

Quizplus · Accepted Answer

Oligopolists are in a market with few firms, making it easier for them to collude and form cartels without fear of entry from new competitors. Additionally, the profits of oligopolies are already higher than those of perfectly competitive markets, giving them even greater incentives to collude and achieve monopoly-like profits.

Which of the Following Have Greater Incentives to Collude and to Form