Recall the Application about the attempt to form a salt cartel in the 19th century to answer the following question(s) .
-Recall the Application.Why did the salt cartel fail to get established,even though it paid new firms not to produce salt for a year?
A) Individual firms cheated on the cartel by selling outside the cartel.
B) The artificially high price also caused new firms to enter the market.
C) Salt consumers found substitutes and brought the price of salt down.
D) Both A and B are correct.
Correct Answer:
Verified
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