One inherent factor that tends to destroy collusion among oligopolists is the
A)incentive to cheat.
B)product differentiation.
C)mutual interdependence.
D)leadership of the dominant firm.

Question

Quizplus · Accepted Answer

Oligopolists have an incentive to cheat on collusive agreements to increase their individual profits by secretly undercutting prices or increasing output.

One Inherent Factor That Tends to Destroy Collusion Among Oligopolists