A cartel is more likely to be successful if

Question

Quizplus · Accepted Answer

A cartel is more likely to be successful if its members produce most of the output in the market. This is because a large market share gives the cartel greater control over price and supply, making it easier for them to coordinate production and price levels. If a cartel has a small market share, it may be more difficult for members to coordinate their actions because they have less leverage in the market. Choices B and C are not necessarily factors that make a cartel successful - heterogeneous market output and overlapping market territories may make it more difficult for the cartel to coordinate their actions and enforce their agreements.

A Cartel Is More Likely to Be Successful If