- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 8. Oligopoly
CFA Practice Question
Collusion results in ______.
B. more competition, higher prices, and higher profits
C. less competition, higher prices, and higher profits
A. less competition, lower prices, and higher profits
B. more competition, higher prices, and higher profits
C. less competition, higher prices, and higher profits
Correct Answer: C
When firms are able to collude, there is a reduction in competition; prices rise and profits rise.
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