An obstacle to collusion among oligopolists is a large number of companies. When there are many firms in the market, it becomes more difficult for them to reach and maintain an agreement on pricing or output levels, as communication and coordination are more complex. In contrast, a small number of companies can more easily coordinate their actions and establish collusion.
Which one is an obstacle to collusion among oligopolists?
A large number of companies.
A small number of companies.
Booming economic times.
A standardized product.
1 answer