Question

Collusive strategies are the third type of cooperative strategies. In many economies, explicit collusive strategies are legal unless otherwise sanctioned by government policies.

A.True
B.False

Answer 1

The correct answer is False

Explicit collusions are not legal because they lead to cartel like behavior. This is because they involve a situation where a small group of oligopolists recognize their mutual interdependence and act to coordinate their behavior in the form of a cartel