Cartels are more successful when:
A) the good is only available in a few places in the world.
B) the good is widely available throughout the world.
C) the good has good substitutes.
D) there are many manufacturers (or miners) for the good.

Question

Quizplus · Accepted Answer

Cartels are more successful when the good is only available in a few places in the world. This is because when the supply of a good is limited, it is easier for the cartel to control the market and set higher prices. If the good is widely available or has good substitutes, the cartel's control over prices and market share will be weaker. Similarly, if there are many manufacturers or miners for the good, it will be difficult for the cartel to coordinate their actions and maintain control over the market.

Cartels Are More Successful When