Collusion is easier to achieve and maintain in oligopoly when

Name: Collusion is easier to achieve and maintain in oligopoly when
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Collusion is easier to achieve and maintain when the firms' products are homogeneous. This is because when products are similar, firms can easily coordinate their actions without losing significant market share. If products are differentiated, it becomes harder for firms to maintain collusion as customers may switch to a competitor who offers a more desirable product.

Collusion Is Easier to Achieve and Maintain in Oligopoly When