Which of the following industry characteristics contributes to collusion?
A) Existence of an industry price leader
B) Existence of many firms in the market
C) Low barriers to entry
D) Lack of market commonality

Question

Which of the following industry characteristics contributes to collusion? 
A) Existence of an industry price leader 
B) Existence of many firms in the market 
C) Low barriers to entry 
D) Lack of market commonality

Quizplus · Accepted Answer

The existence of an industry price leader can contribute to collusion as it provides a focal point for firms to coordinate their actions and stabilize prices.

Which of the Following Industry Characteristics Contributes to Collusion