Cartels form to __________ the price of a certain product,usually are formed by producers,most often __________ production by each member so as to lower supply,and can suffer from serious collective-goods problems.

Question

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Cartels form to manipulate the price of a certain product, usually by limiting production by each member so as to lower supply. This will increase the price due to the reduced availability of the product. However, cartels can suffer from serious collective-goods problems, such as members cheating on production limits and accusations of unfair distribution of profits. Therefore, the best choice is C, which accurately reflects the purpose and strategy of cartels.

Cartels Form to __________ the Price of a Certain Product,usually