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Basic Question 15 of 17
Which of the following facilitates collusion?
B. Difficulty in detecting cheating on the collusive agreement
C. Lax enforcement of the antitrust laws
D. Unstable market demand
A. A large number of firms
B. Difficulty in detecting cheating on the collusive agreement
C. Lax enforcement of the antitrust laws
D. Unstable market demand
User Contributed Comments 2
| User | Comment |
|---|---|
| indrasenareddy | all seem to be possible. any thoughts to eliminate other choices. |
| dybacis | A, it is more difficult to agree with more firms involved. B, if firms cannot be detected cheating there is no incentive to maintain the collusion agreement. D, unstable market demand would change comparable incentive to be or not be in the collusion |
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Learning Outcome Statements
explain supply and demand relationships under oligopoly, including the optimal price and output for firms as well as pricing strategy
CFA® 2025 Level I Curriculum, Volume 1, Module 1.