An industry with heterogeneous products,in which rivals are forced to compete on price,is likely to lead to collusion.

Question

Quizplus · Accepted Answer

An industry with heterogeneous products, in which rivals are forced to compete on price, is less likely to lead to collusion. This is because competitors have different products with different features and benefits, making it difficult to coordinate on a particular price. Collusion is more likely to occur in industries with homogeneous products, where competitors can easily agree on a price and avoid undercutting each other.

An Industry with Heterogeneous Products,in Which Rivals Are Forced to Compete