Impact of collusion on industry

Discussion in 'CT7' started by Rupel, Feb 7, 2017.

  1. Rupel

    Rupel Member

    Hey, I think that collusion will increase industry profits at the cost of the consumer because firms do not produce at the social optimum and can have agreements on the quantity to produce and the price to charge the consumer.

    It would be very helpful if someone could validate my opinion, if not kindly correct me where I am wrong.
    Please reply.
     

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