In some cases cartels are successful because:
A) the cartel produces a manufactured good with many substitutes.
B) the marginal costs of production are high.
C) the barriers to entry in the market are low.
D) the cartel controls access to a key input.

Question

Quizplus · Accepted Answer

Cartels can be successful when they control access to a key input, such as raw materials, which allows them to limit production and raise prices. This is because competitors cannot easily enter the market without access to the same input.

In Some Cases Cartels Are Successful Because