Successful collusion requires all of the following except
A) a monopoly market with strong barriers to entry
B) all firms cooperate, none cheat
C) all firms belong to the same industry
D) collusion will be more profitable than non-collusion
E) the government does not interfere

Question

Quizplus · Accepted Answer

Collusion occurs in oligopolistic markets, not monopolies, because it involves cooperation between multiple firms to control prices or market share. In a monopoly, there is only one firm dominating the market, so collusion is not applicable.

Successful Collusion Requires All of the Following Except