Which of the following make it more difficult for a cartel to succeed?
A) a rising demand for the product
B) identical cost curves for each firm in the industry
C) an identical product is produced by each firm
D) a large number of firms in the industry

Question

Quizplus · Accepted Answer

A large number of firms in the industry makes it more difficult for a cartel to succeed because it increases the likelihood of cheating and makes coordination more challenging.

Which of the Following Make It More Difficult for a Cartel