Which of the following,if true,would decrease the stability of a cartel?
A)The cartel includes a large number of competitive firms.
B)Cheating by any of the cartel members is punishable.
C)The cartel involves repeat games.
D)The cartel is enforceable.

Question

Quizplus · Accepted Answer

The larger the number of firms in a cartel, the harder it is to coordinate their actions and maintain the agreement, reducing stability.

Which of the Following,if True,would Decrease the Stability of a Cartel