ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a monopolistically-competitive firm
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a perfectly-competitive firm
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a monopoly
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an oligopoly
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Detailed explanation-1: -Collusion occurs in different forms across various markets. For example, price-fixing is a type of collusion that happens when two oligopolistic companies offer the same product in a particular marketplace but agree to set specific pricing for their commodities.
Detailed explanation-2: -Collusive oligopoly is a form of the market, in which there are few firms in the market and all of them decide to avoid competition through a formal agreement. They collude to form a cartel, and fix for themselves an output quota and a market price.
Detailed explanation-3: -"The Three Types of Collusion: Fixing Prices, Rivals, and Rules” by Robert H.
Detailed explanation-4: -Collusion occurs when entities or individuals work together to influence a market or pricing for their own advantage. Acts of collusion include price fixing, synchronized advertising, and sharing insider information. Antitrust and whistleblower laws help to deter collusion.