Answer:
Companies under perfectly competitive market structures are independent. Collusion is a secret agreement around companies that may result from this independence.
Step-by-step explanation:
Market structures refer to the different types of markets that exist, characterized by different levels of competition, the number of firms, and the degree of control they have over pricing. The four main market structures are monopoly, oligopoly, monopolistic competition, and perfect competition.
When it comes to independent companies, they operate under a perfectly competitive market structure. In such a market, there are many independent firms that offer identical products or services, and none of them have significant market power or control over prices. As a result, prices are determined by supply and demand, and firms must compete solely on price, quality, and customer service to attract customers.
One potential outcome of this independence is collusion, which is a secret agreement between firms to coordinate their actions and achieve a shared outcome. In this case, the second blank is correctly filled with "collusion." Collusion can result in anticompetitive behavior, such as price-fixing, and can lead to higher prices for consumers and decreased competition in the market. Another example of anticompetitive behavior resulting from collusion is a cartel, which is a group of firms that act together to restrict output and increase prices.
~~~Harsha~~~