Which of the following would make it easier to maintain an effective collusive agreement in a cartel?
A) An increase in the number of potential entrants into the industry.
B) A decrease in the elasticity of demand for the cartel's product.
C) An increase in the number of substitutes for the product produced by the cartel.
D) A new method of pricing that makes it more difficult for each firm to monitor the prices that the other firms in the cartel are charging.
Correct Answer:
Verified
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