Multiple Choice
Which of the following statements is TRUE?
A) It is easier to establish a cartel for a manufactured good than for a natural resource.
B) Cartels are more successful when there are many substitutes for the cartel's good.
C) The high prices charged by a cartel might lead to new firms entering the industry, reducing the cartel's market power.
D) OPEC's high oil prices encourage countries like Mexico, Great Britain, and the Netherlands to cut back on oil production.
Correct Answer:
Verified
Correct Answer:
Verified
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