Economics 9708 · AS & A Level · 7.6

7.6 — practice question

Businesses in a market choose to collude on the price they set for their products. Which feature would be unlikely in such a market?

  • AFirms have similar cost structures.
  • BProducts of the firms are close substitutes.
  • CThere are high barriers to entry into the market.
  • DThere is a large number of competing firms.

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