Why is Collusion likely to occur in Oligopoly market Watch

k-l-d
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Hey guys, got this essay to write and just wanted more detailed notes on why its likely in presence in oligopoly markets. e.g. the structure, the conduct and the performance with formulas
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gr8wizard10
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As there's only a small number of firms in the market; It's easier for the firms to communicate. If all firms see the potential to gain better revenue/profit as working as part of a group, it's likely they would form some kind of collusion. As firms in an oligpoly market are interdependent working together would form a sort of monopoly market (reference diagram). They would all together try and supply at MC=MR. To get rid of uncertainty of competition collusions are a good way of going about it (although under the competition act it's illegal in the EU).
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