Which One of the Following Factors Increases the Likelihood That

question 167

Multiple Choice

Which one of the following factors increases the likelihood that a cartel agreement will lead to higher profit for cartel members?

• A) free entry into the cartelized market
• B) a small number of sellers involved in the cartel agreement
• C) the cartel members produce a differentiated product
• D) highly unstable demand for the product produced by the cartel