Cartels Are Difficult to Maintain in the Long Run Because

question 163

Multiple Choice

Cartels are difficult to maintain in the long run because

• A) they are illegal in all industrialized countries.
• B) individual members may find it profitable to cheat on agreements.
• C) it is more profitable for the industry to charge a lower price and produce more output.
• D) entry barriers are insignificant in oligopolistic industries.

---

Definitions:

Duodenum

The first segment of the small intestine.

Colon

The longest part of the large intestine, functioning in the absorption of water and electrolytes from digested materials before waste elimination.

Cholelithiasis

The medical condition characterized by the formation of gallstones in the gallbladder.

Gallstones

Gallstones are solid particles that form from bile cholesterol and bilirubin in the gallbladder, which can lead to pain, inflammation, and infection.