Cartels are
A)difficult to organize.
B)difficult to preserve.
C)especially unlikely to succeed if the members sell many varied products.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the statements are true. Cartels are difficult to organize because they require trust among members, agreement on pricing and production levels, and adherence to those agreements. Cartels are also difficult to preserve because members may be tempted to break agreements in order to increase their profits. Additionally, it is harder for cartels to succeed if their members sell many varied products because it is harder to coordinate prices and production levels for diverse products.

Cartels Are