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Question

Assertion (A): There is a natural tendency to collude under oligopoly.

Reason (R) : Inter-dependence of firms in oligopolistic markets.

A Both (A) and (R) are correct but (R) is not the correct explanation of (A). Correct Answer Incorrect Answer
B Both (A) and (R) are correct and (R) is the correct explanation of (A). Correct Answer Incorrect Answer
C (A) is correct but (R) is incorrect. Correct Answer Incorrect Answer
D (A) is incorrect but (R) is correct. Correct Answer Incorrect Answer
E Both are incorrect. Correct Answer Incorrect Answer

Solution

There is a natural tendency to collude under oligopoly because of inter-dependence of firms.

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