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Which of the Following Statements Regarding Cartels Is FALSE

Question 126

Multiple Choice

Which of the following statements regarding cartels is FALSE?


A) Cheating by cartel members is less profitable and easier to detect if there are fewer firms in the industry.
B) New entrants can be prevented when the cartel-controlled good is limited in supply.
C) Cartels should control natural resources that are rare and more valuable.
D) Cartels are more successful if they are backed by government and the power of the law.

Correct Answer:

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