You are given the following information about an oligopolistic industry:
(i) There are few firms in the industry.
(ii) There is no dominant supplier.
(iii) The firms' products are close substitutes for each other.
Which combination of these features is likely to encourage collusion between the firms in the industry?
A) (i) and (iii)
B) (i) , (ii) and (iii)
C) (i) and (ii)
D) (ii) and (iii)
E) (ii) only
Correct Answer:
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