With barriers to the entry of new firms,

Name: With barriers to the entry of new firms,
Brand: Quizplus
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Question

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With barriers to entry, a cartel might earn an economic profit because new firms cannot easily enter the market to increase competition and drive down prices. However, it is still possible for cartel members to have an incentive to cheat and increase their own profits. Industry supply will not necessarily expand if firms form a cartel, as the goal of the cartel is typically to limit supply and raise prices.

With Barriers to the Entry of New Firms