EXERCISE 8.8 PRICE-FIXING

We have used chocolate bars as a hypothetical example of an approximately competitive market. But in recent years, producers of best- selling chocolate bars worldwide have been accused of colluding with each other to keep prices high. Use the information in this article (https://tinyco.re/9016236) to explain:

1. In what ways does the market for chocolate bars fail to satisfy the con- ditions for perfect competition?

2. Each brand of chocolate bar faces competition from many other similar brands. Why, despite this, do some producers have considerable market power?

3. In what market conditions do you think price-fixing is most likely to occur, and why?

I attached the picture of the article ,but, you seem to be unable to get it. So, here is the URL of the article. https://tinyco.re/9016236

I would be happy if you paste the URL and google it.

I'm sorry for any inconvenience.