Consider an industry with six identical firms selling a homogenous product. The firms set prices with an infinite horizon. All firms have a discount factor of .

Which of the following statements is true?

Firms can sustain collusion if is greater or equal 1/5.

Firms can sustain collusion if is greater or equal 1/6.

Firms can sustain collusion if is greater or equal 5/6.

Firms can sustain collusion if is greater or equal 6/7.