Which of the following statements is TRUE?
A) Cartels generally persist and are quite common.
B) Few cartels move an industry from competition to pure monopoly.
C) Cartels work better when there are more firms involved.
D) Cartels persist because the cartel members enforce their agreements.

Question

Quizplus · Accepted Answer

Cartels typically have a difficult time maintaining their agreements and often break down, leading to competition. Few cartels have been successful in achieving and maintaining a pure monopoly in their industry.

Which of the Following Statements Is TRUE