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One of the Reasons Cartels Are Considered Unstable Is That

Question 83

Multiple Choice

One of the reasons cartels are considered unstable is that


A) member firms reduce their investment,thereby becoming uncompetitive over time.
B) it is inefficient to manage individual firms collectively.
C) there are wide fluctuations in price as cartel members vary their output.
D) consumers seek out substitutes to the cartel product.
E) individual members of the cartel have an incentive to violate the cartel agreement.

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