The Condition Under Which a Cartel Can Maintain Its Stability

question 85

Multiple Choice

The condition under which a cartel can maintain its stability is that:

• A)the barriers to entry should be relaxed.
• B)an identical product should be produced by the colluding firms.
• C)there should be a large number of firms in the market.
• D)there should be legal barriers to share agreements.
• E)the products of the colluding firms should be highly differentiated.

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