Unit 2: Market dominance and government action: Government fines on supermarkets for price fixing on dairy products

These BBC clip and aticle explains why the major supermarkets, excluding so far Tesco, have been fined a collective £116m

http://news.bbc.co.uk/player/nol/newsid_7130000/newsid_7132100/7132165.stm?bw=bb&mp=rm&asb=1&news=1&bbcws=1

http://news.bbc.co.uk/1/hi/business/7132108.stm

a) What market structure is the supermarket industry?
b) Why are firms in this industry tempted into collusion?
c) To what extent do you think such fines will limit this sort of illegal behavior?