As an industry increases in concentration, the chance that collusion will take place in the industry also increases.

Name: As an industry increases in concentration, the chance that collusion will take place in the industry also increases.
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As the number of firms in an industry decreases and a few large firms dominate the market, there is a greater opportunity and incentive for those firms to collude and act as a cartel to increase profits.

As an Industry Increases in Concentration, the Chance That Collusion