Collusion among firms always involves formal agreements.

Collusion

An agreement between competing firms to control prices or exclude entry of a new competitor in the market, often in violation of antitrust laws.

Distinguish between the qualities and outcomes of collusive and non-collusive oligopolies.

Verified Answer

Final Answer :

False

Explanation :

Collusion can also involve informal agreements or understandings among firms without any formal contract or agreement.

Learning Objectives

Distinguish between the qualities and outcomes of collusive and non-collusive oligopolies.