Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g.,bauxite)market?
A)High prices
B)Low price elasticity of demand
C)High compatibility of member interests
D)Unequal member ownership of the natural resource

Question

Quizplus · Accepted Answer

Unequal member ownership of the natural resource would lead to conflicts of interest, making it more difficult for the cartel to maintain cooperation and control over the market. Members with larger ownership may want to increase their production and sales, while smaller owners may prefer to limit supply to maintain higher prices. This imbalance in incentives can lead to internal disputes and ultimately weaken the cartel's power in the market.

Which of the Following Would Be Most Likely to Contribute