The only item which would be consistent with a decreased likelihood of cartel formation for production of a product is
A) patent protection
B) price inelastic demand
C) many producers
D) income elastic demand
E) limited market entrance

Question

Quizplus · Accepted Answer

Cartel formation is more difficult when there are many producers because coordinating and enforcing agreements among a large number of firms is challenging. With fewer firms, it's easier to form cartels and control market conditions.

The Only Item Which Would Be Consistent with a Decreased