Cartels are likely to be better able to prevent their members from cheating on an agreement:

Question

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Fewer members in a cartel means that there are fewer potential cheaters and it's easier to monitor and enforce compliance with the agreement. In contrast, with a greater number of members, it becomes harder to keep track of everyone's behavior and there is a greater probability that some members may cheat on the agreement. Additionally, the greater the differences in production costs or demand projections, the greater the likelihood of cheating, as some members may find it more profitable to deviate from the agreement. Finally, a more elastic demand means that cartel members have less control over the price of the product, which reduces the incentive to cooperate with the agreement.

Cartels Are Likely to Be Better Able to Prevent Their