Cartels are relatively rare because
A)they are illegal in some countries, including the United States.
B)members find it difficult to agree on key decisions.
C)members frequently have an incentive to cheat on the cartel.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the above reasons contribute to the rarity of cartels. The illegality of cartels in many countries, including the United States, means that members may face legal repercussions for their actions. In addition, reaching agreements on key decisions can be difficult as members may have differing opinions or priorities. Finally, the temptation to cheat on the cartel agreement can be strong, especially if one member sees an opportunity to gain a competitive advantage over the others.

Cartels Are Relatively Rare Because