Which of the following statements regarding cartels is not correct?
A) Cartels are sometimes difficult to maintain because a member can cheat by raising its price above the agreed price.
B) Cartels restrict industry output in order to raise price.
C) Cartels are inherently stable, because oligopolistic firms rarely change price.
D) are easier to establish and maintain when the cost functions of the individual members are more similar to one another.
Correct Answer:
Verified
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