- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 8. Oligopoly
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 |
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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... |