In what type of market is a cartel possible?
A) a market in which there are only a few firms and barriers to entry exist
B) a market in which firms sell a homogeneous good
C) a market in which firms sell a differentiated good
D) a market in which there are many firms

Question

Quizplus · Accepted Answer

A cartel is possible in a market with only a few firms and barriers to entry, as this allows firms to collude and control prices or output without the threat of new competitors entering the market.

In What Type of Market Is a Cartel Possible