Cartels often dissolve because
A)their members often set a time limit as to how long the cartel should exist.
B)their members often cheat on the cartel agreements because they have incentive to.
C)their members often find that they do not earn as high profits from the cartel as they had hoped to.
D)firms in a cartel face different costs than firms outside a cartel.
E)none of the above

Question

Quizplus · Accepted Answer

Cartels often dissolve because members have an incentive to cheat on the agreements to increase their individual profits, undermining the collective control over the market.

Cartels Often Dissolve Because