A-LevelEconomicsThe price system and the microeconomy9708/31 · Oct/Nov 2017 · Q101 Mark
The firms in an industry decide to collude informally and follow a price leader. What will reduce the likelihood that the collusion will succeed?
- A The firms produce close substitutes. B The firms have similar cost structures. C There are low barriers to entry into the industry. D There are only a few firms in the industry.[1]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.
- [1] C
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