Collusion is likely to fall apart due to:

Question

Quizplus · Accepted Answer

Collusion involves firms agreeing to restrict output in order to raise prices and increase profits. However, the incentive for each firm is to cheat on the agreement by producing more than the agreed quantity in order to capture a larger market share and increase its own profits. This self-interested behavior by each firm can lead to the breakdown of the collusive agreement and ultimately result in lower prices and profits for all firms involved.

Collusion Is Likely to Fall Apart Due To