Which statement is true?

A) Collusion is most likely in industries with high concentration ratios.
B) Collusion is most likely in industries with low concentration ratios.
C) There is no relationship between the likelihood of collusion and the size of the concentration ratio.

Collusion

The practice of firms to negotiate price and/or market share decisions that limit competition in a market.

Concentration Ratios

Concentration ratios are measures that indicate the extent of market control by the largest firms within an industry, reflecting the degree of market competition.

High Concentration

A situation in a market where a small number of firms hold a large market share, often leading to reduced competition.