The two characteristic problems for cartels are

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The two characteristic problems for cartels are policing members' output restrictions, which means ensuring that all cartel members adhere to agreed-upon production levels, and preventing new entrants, which means ensuring that new firms do not enter the market and compete with the cartel. While agreeing on the price to be set is important, it is not one of the two characteristic problems of cartels. Similarly, coordinating marketing policies and policing members' quotas are not the two main problems associated with cartels. Finally, policing members' prices and restricting output is not an accurate representation of the challenges faced by cartels.

The Two Characteristic Problems for Cartels Are