- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 8. Oligopoly
CFA Practice Question
In which of the following market structures is collusion most likely to occur?
A. Oligopoly
B. Monopolistic competition
C. Perfect competition
Explanation: Since there are only a few firms in an oligopoly, firms recognize their interdependence; this gives each firm an incentive to collude with other firms in the industry.
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