In an oligopoly game,the greater the number of players who are colluding:
A)the lower the possibility of cheating.
B)the more elastic the demand curve of the cheater.
C)the higher the payoff received by each player from colluding.
D)the lower will be the profit from cheating.

Question

Quizplus · Accepted Answer

With more firms colluding in an oligopoly, the demand curve facing a cheater becomes more elastic because the cheater can capture a larger share of the market by undercutting the collusive price, attracting customers from the colluding firms.

In an Oligopoly Game,the Greater the Number of Players Who