Which condition will NOT contribute to a cartel's stability?
A) significant barriers to entry
B) few members
C) government protection
D) nonprice discounts

Question

Quizplus · Accepted Answer

Cartels are more stable when there are significant barriers to entry, few members, and government protection, as these factors help maintain control over the market and prices. Nonprice discounts, however, can introduce competition within the cartel, undermining its stability by encouraging members to compete in ways other than price, potentially leading to the cartel's breakdown.

Which Condition Will NOT Contribute to a Cartel's Stability