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Why Firms Try to Collude and Discuss the Factors that May Facilitate and Hinder Sustained Collusion with Reference to a Particular Case
In this essay, I am going to talk about the reasons that firms may decide to collude, the factors that help and prevent collusion, the types of collusion and a case study (OPEC) which illustrate the points.
In an Oligopoly industry, there are only a few firms between them share a large proportion of the industry. Unlike firms under Monopolistic, there are various barriers to the entry of new firms, the size of the barriers, however, will vary from industry to industry. …
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- Why Firms Try to Collude and Discuss the Factors that May Facilitate and Hinder Sustained Collusion with Reference to a Particular Case
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