The correct answer is cheating by firms.
In an oligopoly, firms may attempt to collude to set prices or output levels to maximize their collective profits. However, cheating—where one or more firms do not adhere to the agreed-upon prices or output levels—can undermine collusion. If firms cheat, it can lead to price wars and diminished profits for all firms involved, making it a significant obstacle to successful collusion.
The other options, such as prosperous economic conditions, a small number of firms, and a homogenous product, can potentially facilitate collusion rather than hinder it.
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