Which of the following would contribute to the break-up of a cartel?

Name: Which of the following would contribute to the break-up of a cartel?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A cartel relies on all firms agreeing to limit production and raise prices in order to increase profits. If one or more firms decide to increase their production and sell more at lower prices, this can disrupt the cartel's pricing agreement and lead to its break-up. Thus, the desire to increase profits can contribute to the break-up of a cartel.

Which of the Following Would Contribute to the Break-Up of a Cartel