Collusion Is Easier to Achieve and Maintain in Oligopoly When

question 135

Multiple Choice

Collusion is easier to achieve and maintain in oligopoly when

• A)there are many firms in the industry
• B)the firms' products are homogeneous
• C)the firms' cost structures are very different
• D)there are very weak barriers to entry
• E)the industry is located in the United States

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Definitions:

Impeller

The driving member of a torque converter torus; the impeller is mechanically connected to the engine crankshaft and should rotate at the same speed.

Lock-up Clutch

A mechanism used in automatic transmissions that locks the engine directly to the transmission's output, improving fuel efficiency and performance.