Cartels will tend to be more successful when there are ______ for the cartelized good.
A) more substitutes
B) fewer substitutes
C) more producers
D) fewer consumers

Question

Quizplus · Accepted Answer

If there are fewer substitutes available for the cartelized good, consumers will have fewer options to turn to if they don't want to pay the higher prices set by the cartel. This gives the cartel more market power and makes it easier for them to enforce their price agreements.

Cartels Will Tend to Be More Successful When There Are