Economics (AS & A Level) · May / June 2022 · Paper 31 · Question 7
9708Different market structures
Firms in a market decide to collude over the price that they charge for their products. What is not likely to be a feature of the market?
- AFirms have similar cost structures.
- BProducts of the firms are close substitutes.
- CThere are high barriers to entry into the market.
- DThere is a large number of competing firms.
As printed in the paper
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Correct answer: D. There is a large number of competing firms.
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