In what type of market is a cartel possible?
A) A market in which there are many firms
B) A market in which there are only a few firms and barriers to entry exist
C) A market in which firms sell a differentiated good
D) A market in which firms sell an homogeneous good

Question

Quizplus · Accepted Answer

Cartels are more likely to form in markets with a few firms and high barriers to entry because it's easier for these firms to collaborate on setting prices or output levels.

In What Type of Market Is a Cartel Possible