Cartels can more easily detect cheating by cartel members if the products sold by each member are largely homogeneous. As product quality varies, the observed prices charged by cartel members may be due to differences in the products, or they may be due to cheating. Which of the following goods would more difficult to monitor for potential cheating?
A) Aluminum ingots
B) Industrial concrete
C) Steel beams
D) Luxury yachts

Question

Quizplus · Accepted Answer

Luxury yachts are likely to have a high degree of product differentiation and customization, making it difficult to determine if differences in prices charged by cartel members are due to cheating or product differences.

Cartels Can More Easily Detect Cheating by Cartel Members If