Economics 9708 · AS & A Level · 7.6

7.6 — practice question

Which conditions would make collusion between firms in an industry more likely in order to maximise joint profits?

  • AThe industry consists of a large number of producers.
  • BThe industry has many differentiated products.
  • CThe industry is characterised by rapid technological change.
  • DThere are significant barriers to prevent new firms entering the industry.

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