For Firms in an Oligopoly,the Main Advantage of Explicit Collusion

question 1

Multiple Choice

For firms in an oligopoly,the main advantage of explicit collusion is that it

• A)removes much of the uncertainty about rivals' reactions.
• B)makes all firms more productively efficient.
• C)leads to greater product differentiation.
• D)reduces the cost per unit of advertising.
• E)eliminates the gains from cheating.