Economics 9708 · AS & A Level · 7.6

7.6 — practice question

The businesses in an industry agree unofficially to cooperate and adopt a price leader. What would make it less likely that this collusion succeeds?

  • AThe firms produce close substitutes.
  • BThe firms have similar cost structures.
  • CThere are low barriers to entry into the industry.
  • DThere are only a few firms in the industry.

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