Another Possible Source of Why Cartels Break Down Is the Growth

Multiple Choice

Another possible source of why cartels break down is the growth potential of the industry. Although industries with a lot of potential are more willing to invest in the time to form a collusive agreement, such growth potential also deters them from making this investment. Why would that be?

A) High-growth industries are more likely to be monitored by the government.
B) High-growth industries are less likely to face an inelastic demand curve.
C) High-growth industries are more likely to have lots of entrants.
D) High-growth industries are less likely to have the support of the government.