The likelihood of collusion between fims is less when markets are highly concentrated..

Question

Quizplus · Accepted Answer

The statement is incorrect. When markets are highly concentrated, there is a greater likelihood of collusion between firms because there are fewer players in the market and it is easier for them to coordinate their actions. In contrast, in a competitive market with many players, collusion is less likely because there are too many firms to coordinate with and cheating on an agreement is more tempting.

The Likelihood of Collusion Between Fims Is Less When Markets