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(Collusion) Industries A and B can be characterized by a series of parameters: n, the number of firms, is 8 in both industries; r, the
(Collusion) Industries A and B can be characterized by a series of parameters: n, the number of firms, is 8 in both industries; r, the annual interest rate, is 10% in both industries; f, the frequency with which firms interact (number of times per year), is 1 in industry A and 12 in industry B; g, the industry growth rate, is 10% in industry A and 30% in industry B; finally, h, the likelihood that the industry will continue in existence into the next period, is 80% in industry A and 100% in industry B. In which of the two industries do you think tacit collusion is more likely to take place? Briefly justify your answer. (Collusion) Industries A and B can be characterized by a series of parameters: n, the number of firms, is 8 in both industries; r, the annual interest rate, is 10% in both industries; f, the frequency with which firms interact (number of times per year), is 1 in industry A and 12 in industry B; g, the industry growth rate, is 10% in industry A and 30% in industry B; finally, h, the likelihood that the industry will continue in existence into the next period, is 80% in industry A and 100% in industry B. In which of the two industries do you think tacit collusion is more likely to take place? Briefly justify your
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