Collusion among oligopolists would generally be easiest to achieve in which of the following situations?

Question

Quizplus · Accepted Answer

Collusion is easier to achieve when there are fewer producers in the market, as it is easier to communicate and reach agreements. Additionally, when producers sell homogeneous products, it is easier to coordinate and achieve price stability, as there are no differences in product quality or features to distinguish among them. Therefore, the situation described in option B (very few producers, producing homogeneous products) is the most conducive to collusion among oligopolists.

Collusion Among Oligopolists Would Generally Be Easiest to Achieve in Which