Cartels would be more stable if:
A)firms that cheat on the agreement could be legally punished.
B)firms that cheat on the agreement were better informed about the value of agreement.
C)demand for the output was more variable.
D)the cartel profit were higher than the profit each individual firm could earn without the cartel.

Question

Quizplus · Accepted Answer

Cartels cannot legally enforce their agreements and economic incentives operate to encourage defection from the cartel.

Cartels Would Be More Stable If