If a cartel is unable to monitor its members and punish those firms that violate their agreement, then

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Monitoring and punishing firms that violate the agreement is crucial for the success of a cartel. Without these mechanisms in place, member firms have an incentive to cheat by producing and selling more than their allocated quota, thereby lowering the price and increasing their own profits. This leads to a breakdown of the cartel and the market reverts to a more competitive outcome. Therefore, if a cartel is unable to monitor its members and punish those that violate the agreement, it is likely to fail.

If a Cartel Is Unable to Monitor Its Members and Punish