Collusion Is Difficult for an Oligopoly to Maintain

question 48

Multiple Choice

Collusion is difficult for an oligopoly to maintain

• A) all of these answers.
• B) if additional firms enter of the oligopoly.
• C) because competition laws make collusion illegal.
• D) because, in the case of oligopoly, self-interest is in conflict with cooperation.

---

Definitions:

Shareholders

Individuals or entities who own one or more shares of stock in a corporation, making them partial owners of the company.

Dissolution

The process of legally dissolving or ending an entity, such as a corporation or partnership.

Debenture

A type of debt instrument that is not secured by physical assets or collateral but is backed by the general creditworthiness and reputation of the issuer.

Creditor/Debtor

A relationship where one party (the creditor) lends money or extends credit, and the other party (the debtor) owes the money.