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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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