Herb's Inc.has a large share of its market and is tempted to collude with the few firms that are in its market.Herb's operates in

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Collusion is an illegal practice where firms in an industry work together to limit competition and maintain higher prices. This is often seen in oligopolistic markets where there are only a few dominant firms. Therefore, Herb's Inc.'s temptation to collude suggests that it operates in an oligopoly.