Which of the following is NOT a reason why cartels collapse?
A) cheating by the cartel members
B) new entrants and demand response
C) government prosecution
D) increasing production costs

Question

Quizplus · Accepted Answer

Increasing production costs can lead to higher prices and profitability for the cartel, and therefore is not a reason for it to collapse. The other three options, cheating, new entrants/demand response, and government prosecution, can all negatively affect the stability and success of a cartel.

Which of the Following Is NOT a Reason Why Cartels