Which of the following increases the likelihood that a group of sellers can increase profits as the result of collusion?
A) the presence of a large number of firms in the industry
B) intense quality competition among firms
C) low barriers to entry into the industry
D) a stable demand for the product

Question

Quizplus · Accepted Answer

A stable demand for the product makes it easier for firms to predict sales and profits, facilitating collusion efforts to control prices and output.

Which of the Following Increases the Likelihood That a Group