CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

The obstacles to collusion include all of the following except ______.

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
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