Why is it difficult for colluding firms to maintain a cartel?

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Maintaining a cartel is difficult because member firms often find the temptation to cheat on the agreed-upon price and output levels too great to resist. This can lead to the breakdown of the cartel and a return to competition. Additionally, new firms may enter the industry if the existing firms are making large profits, which can further disrupt the cartel's stability. While cartels may also be illegal in some jurisdictions, this alone does not make it difficult for colluding firms to maintain a cartel. The issue is primarily with the internal dynamics of the cartel itself.

Why Is It Difficult for Colluding Firms to Maintain a Cartel