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For Firms in an Oligopoly,the Main Advantage of Explicit Collusion

Question 81

Multiple Choice

For firms in an oligopoly,the main advantage of explicit collusion is that it


A) removes much of the uncertainty about rivals' reactions.
B) makes all firms more productively efficient.
C) leads to greater product differentiation.
D) reduces the cost per unit of advertising.
E) eliminates the gains from cheating.

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