Question

Why is collusion often considered bad for consumers?

Answer 1

Answer:

Problems of collusion

Collusion is seen as bad for consumers and economic welfare, and therefore collusion is mostly regulated by governments. Collusion can lead to: High prices for consumers. This leads to a decline in consumer surplus and allocative inefficiency (Price pushed up above marginal cost)

Explanation:

Answer 2

Answer:

Collusion is seen as bad for consumers and economic welfare, and therefore collusion is mostly regulated by governments. Collusion can lead to: High prices for consumers. ... Easy profits from collusion can make firms lazy and avoid innovation and efforts to increase productivity.


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