Question

multiple select question
select all that apply
which of the following are obstacles to collusion in an oligopolistic industry?
recession
antitrust laws
cheating
threat of a price war
demand and cost differences
mutual interdependence

Explanation:

• Recession can change market - conditions and disrupt collusive agreements.
• Antitrust laws prohibit collusive behavior, imposing legal risks.
• Cheating by firms in a collusive agreement undermines cooperation.
• The threat of a price - war can break down collusive arrangements.
• Demand and cost differences among firms make it hard to agree on terms.
• Mutual interdependence is a characteristic of oligopoly, not an obstacle to collusion.

Answer:

A. Recession
B. Antitrust laws
C. Cheating
D. Threat of a price war
E. Demand and cost differences