If anything, a cartel is likely to ________ and ________ power over time.
A) strengthen; gain
B) collapse; lose
C) go bankrupt; then reorganize under bankruptcy law and gain
D) operate in competitive markets; price discriminate to gain

Question

Quizplus · Accepted Answer

Cartels are inherently unstable and face challenges to maintain cooperation among members over time. As more profits are made, members have an incentive to cheat on agreements and increase their own profits, leading to a collapse of the cartel. Additionally, external pressure from competition, changes in government regulations, or new technological innovations can undermine the cartel's power and make it harder to maintain its position. Therefore, a cartel is more likely to collapse and lose power over time, rather than strengthen and gain power.

If Anything, a Cartel Is Likely to ________ and ________

If Anything, a Cartel Is Likely to and