Question

In what type of structure can businesses "collude" or work together to set prices?
Group of answer choices

Oligopoly

Monopoly

Monopolistic Competition

Perfect Competition

Answer 1

The type of structure where businesses can "collude" or work together to set prices is an **Oligopoly**. In an oligopoly, a few firms dominate the market, and they may engage in collusion to set prices or output levels to maximize their profits, as their decisions are interdependent.