- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 8. Oligopoly
CFA Practice Question
The obstacles to collusion include all of the following except ______.
II. low entry barriers
III. unstable market demand
IV. vigorous antitrust prosecution
I. a small number of firms
II. low entry barriers
III. unstable market demand
IV. vigorous antitrust prosecution
A. I only
B. II and III
C. IV only
Explanation: Having a small number of firms facilitates collusion by reducing the costs of both organizing and monitoring the cartel.
User Contributed Comments 2
| User | Comment |
|---|---|
| adamrej | How come is vigorous antitrust prosecution not an obstacle to collusion ?! |
| cmacewen | read the question mate |