Cartels Are Typically Subject to Cheating by Their Members Because

Multiple Choice

Cartels are typically subject to cheating by their members because

A) if the other firms stick to the agreement, a firm can increase its profits by cutting its price.
B) barriers to entry do not exist so new entrants will join.
C) the U.S. Justice Department will punish any cartel agreement before the cartel has had a chance to operate.
D) product differentiation allows the firms in the cartel to cheat.