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Cartel Agreements Are Difficult to Maintain Because Individual Members

Question 195

Multiple Choice

Cartel agreements are difficult to maintain because individual members


A) can gain by raising their price above the price that is best for the cartel.
B) are often unable to police the price and output policies of other members.
C) can gain by secretly raising their price above the price that is best for the cartel.
D) can enforce price arrangements vigorously in court.

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