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For each of the following factors, explain if the existence of that factor in a market serviced by an oligopoly would make collusion more likely

For each of the following factors, explain if the existence of that factor in a market serviced by an oligopoly would make collusion more likely or less likely. Explain your reasoning.

a.Highly inelastic demand

b.Low barriers to entry

c.Highly differentiated products (versus homogeneous products)

d.A smaller number of firms (for example, 3 firms rather than 8 firms)

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