Why is collusion more likely in cases of oligopoly than in perfect competition?
a. In oligopoly, all firms sell an identical product; but in perfect competition, the product varies between producers.
b. There are too many firms in perfect competition to allow for collusion.
c. Oligopoly moves towards an equilibrium outcome; perfect competition does not.
d. Perfect competition moves toward an equilibrium outcome; oligopoly does not
Ans: b. There are too many firms in perfect competition to allow for collusion.
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