Question

Explain the impact of collusion in terms of output and price on the consumers and producers

Answer 1

Answer:

this is the answer

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Explanation:

Collusion is a way for firms to make higher profits at the expense of consumers and reduces the competitiveness of the market. In the above example, a competitive industry will have price P1 and Q competitive. If firms collude, they can restrict output to Q2 and increase the price to P2.