In some cases cartels are successful because:

Question

Quizplus · Accepted Answer

Cartels can be successful when they control access to a key input, as it allows them to restrict supply and drive prices up. This is because other firms cannot easily enter the market and produce the same goods without access to the key input. Cartels may not be successful if there are many substitutes for the goods they produce, if the marginal costs of production are high, or if the barriers to entry in the market are low, as these factors could drive down prices and increase competition.

In Some Cases Cartels Are Successful Because