Obstacles to collusion among oligopolists include the following, except
A) demand and costs differences among firms.
B) long-lasting economic recession and poor industry performance.
C) potential new entrants into the market.
D) "gentlemen's agreements" among the firms.

Question

Quizplus · Accepted Answer

"Gentlemen's agreements" among the firms are not obstacles but rather enable collusion among oligopolists. Demand and costs differences, economic recession, and potential new entrants disincentivize and make collusion difficult.

Obstacles to Collusion Among Oligopolists Include the Following, Except