In an industry with a large number of firms,
A) each firm will produce a large quantity, relative to market demand.
B) one firm will dominate the market.
C) collusion is impossible.
D) competition is eliminated.
E) barriers to exit must exist.

Question

Quizplus · Accepted Answer

In an industry with a large number of firms, collusion becomes nearly impossible due to the difficulty in coordinating and enforcing agreements among a large number of participants.

In an Industry with a Large Number of Firms