In an oligopoly market,collusion between firms usually leads to higher profits than does noncooperative behaviour.However,formal,overt collusion doesn't usually occur in Canada because: I.it is illegal.
II.there is an incentive for each firm to cheat on a collusive agreement.
III.an oligopolistic firm will typically prefer lower profits for itself if the only way to make higher collective profits in the industry is to improve the profit position of its rivals.

Question

Quizplus · Accepted Answer

Collusion is illegal in Canada, and firms have an incentive to cheat on collusive agreements to increase their individual profits.

In an Oligopoly Market,collusion Between Firms Usually Leads to Higher