When cheating is less profitable or easier to detect, a cartel will be easier to sustain.

Question

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If cheating is less profitable or easier to detect, members of a cartel will be less likely to deviate from the agreed-upon terms since the potential gains from cheating will be lower or the risk of getting caught will be higher. This makes it easier to sustain a cartel as members are more likely to stick to the agreed-upon rules.

When Cheating Is Less Profitable or Easier to Detect, a Cartel