Which of the following types of markets would be the most likely to maintain a successful collusive agreement?
A)a market with many sellers,many buyers,unstable market demand,and privately negotiated prices
B)a market with few sellers,many buyers,stable market demand,and privately negotiated prices
C)a market with few sellers,many buyers,stable market demand,and publicized prices
D)a market with many sellers,few buyers,stable market demand,and privately negotiated prices
E)a market with few sellers,few buyers,unstable market demand,and publicized prices

Question

Quizplus · Accepted Answer

A market with few sellers, many buyers, stable market demand, and publicized prices is conducive to successful collusion because the few sellers can easily monitor each other's prices and output, and stable demand reduces uncertainty.

Which of the Following Types of Markets Would Be the Most