Hi,
Can someone explain the difference between collusion and perfect competition?
And also i have my attempt in december and i have started last weak with kaplan so i want to know is kaplan enough for level 1?
Kaplan is enough for L1.
Collusion happens when the companies in a market arrange between them (non-public illegal arragements) to fix the current price above the price that would be if they competed in a perfect competition or the price from equilibrium of demand and supply. A collusion is unlikely in a market of perfect competition because it would imply the collusion of all the firms of the market. Is more common to see collusion in oligopolies. As you can note, perfect competition is the all way around to a collusion.