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Cartels Made Up of a Large Number of Firms Are

Question 259

Multiple Choice

Cartels made up of a large number of firms are unstable because each firm in the cartel:


A) has an incentive to cheat.
B) is producing a relatively homogeneous product in which entry barriers are low.
C) does not have to worry about losses.
D) recognizes that the market size is relatively stable.

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