Which of the following is NOT an important determinant of collusion in pricing games?
A) The number of firms
B) The importance and magnitude of the item in a consumers' budget
C) History
D) All the statements associated with this question are important.

Question

Quizplus · Accepted Answer

The importance and magnitude of the item in a consumers' budget is not a determinant of collusion in pricing games, as it does not directly affect the ability or willingness of firms to collude. The other factors listed (the number of firms, history, etc.) can all play important roles in determining whether collusion is likely to occur.

Which of the Following Is NOT an Important Determinant of Collusion