Which of the following statements is TRUE?
I. It is easier to form a cartel for a product with few substitutes.
II. Cartels that are backed and supported by the government tend to have less power.
III. Cartels are more likely to collapse the more firms there are in an industry.
A) I only
B) II only
C) I and III only
D) II and III only

Question

Quizplus · Accepted Answer

Cartels are easier to form for products with few substitutes because there is less competitive pressure. Cartels are more likely to collapse with more firms due to increased difficulty in maintaining cooperation.

Which of the Following Statements Is TRUE