The more successful a cartel is in raising the profits of the firms in the cartel, the:
A) less likely there will be cheating.
B) more likely there will be cheating.
C) more competitive the cartel.
D) more likely there will be a price war.

Question

Quizplus · Accepted Answer

The more successful a cartel is in raising the profits of the firms in the cartel, the more likely there will be cheating. This is because a higher profit margin means there is more incentive for firms to break the agreement and increase their own profits even further.

The More Successful a Cartel Is in Raising the Profits