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podryga [215]
3 years ago
10

How collusion affects consumers and society at large?​

Social Studies
2 answers:
Mila [183]3 years ago
8 0

Explanation: 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) New firms can be discouraged from entering the market by types of collusion which act as a barrier to entry.

Art [367]3 years ago
4 0

Answer:

Collusion can lead to High prices for consumers. This leads to a decline in consumer surplus and allocative inefficiency.

Explanation:

New firms can be discouraged from entering the market by types of collusion which act as a barrier to entry.

Easy profits from collusion can make firms lazy and avoid innovation and efforts to increase productivity.

Industry gets the disadvantages of monopoly (higher price) but none of the advantages (e.g. economies of scale)

MARK ME BRAINLIEST PLEASE ❤️

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