A cartel will break down more easily if
A) there are only a few members.
B) industry demand is very stable.
C) market prices can be observed easily.
D) there are many entrants in the industry.

Question

Quizplus · Accepted Answer

A cartel is more likely to break down if there are many entrants in the industry, as increased competition makes it harder to maintain collusion and control over prices.

A Cartel Will Break Down More Easily If