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Cartels Are Thought to Be Inherently Unstable Because

Question 53

Multiple Choice

Cartels are thought to be inherently unstable because:


A) the costs of enforcing cartel agreements are very low.
B) each cartel member can privately profit from increasing production beyond agreed-upon levels.
C) customers force cartel members to increase production and reduce prices.
D) cartel agreements are legally binding and can be upheld in court.

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