Which of the following is NOT a condition that helps enforce a cartel agreement?
A) a small number of firms
B) nearly homogeneous products
C) easily observable prices
D) large variation in input prices

Question

Quizplus · Accepted Answer

Large variation in input prices makes it difficult for firms to coordinate on output and pricing decisions, which weakens the ability for a cartel agreement to be enforced. A small number of firms, nearly homogeneous products, and easily observable prices all make it easier for a cartel to maintain and enforce their agreed-upon pricing and output levels.

Which of the Following Is NOT a Condition That Helps