Which of the following will reduce the likelihood of effective collusion among oligopolistic producers?
A) low entry barriers into the market
B) a production of a homogenous product
C) a stable market demand for the product
D) a highly inelastic market demand for the product

Question

Quizplus · Accepted Answer

Low entry barriers into the market increase the threat of new entrants, making it difficult for existing firms to maintain collusion as new competitors can disrupt the market dynamics.

Which of the Following Will Reduce the Likelihood of Effective