CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

From the perspective of all the firms in an industry, the ideal collusive agreement is identical to (the) ______.
A. competitive equilibrium
B. monopoly equilibrium
C. monopolistic competition
Explanation: The ideal collusive equilibrium is equivalent to the monopoly equilibrium.

User Contributed Comments 5

User Comment
CHADZAMIRA What exactly does this answer mean? Can collusion take place in a single-firm industry? Please explain this to me!
faya it should be oligopolistic equilibrium in my opinion
Janey In a collusive agreement oligopolistic firms wish to have a monopoly equilibrium
cp24 The net effect of collusion among all firms in an industry is equal to having just one firm in that industry (i.e. a monopoly).
steved333 yes. when firms collude, they act as a single firm...
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