Collusion among oligopolists often breaks down due to _____ by one or more members.Multiple choice question.snitchingcheating

The answer to the question regarding why collusion among oligopolists often breaks down is "cheating."

Explanation

Collusion occurs when firms in an oligopoly agree to limit competition among themselves, often by setting prices or output levels. However, this agreement is inherently unstable because each firm has an incentive to cheat on the agreement to maximize its own profits.

If one firm raises its production beyond the agreed-upon levels or lowers its prices secretly, it can capture a larger market share at the expense of the other firms in the collusion. This act of cheating can lead to a breakdown of the collusion as other firms may respond similarly, leading to a price war and the return to competitive behavior.

In contrast, "snitching" refers to informing on other firms' activities but is generally not the primary reason for collusion breakdown. Hence, in the context of the options provided, "cheating" is the most appropriate answer.