Even Though a Cartel Is Often Profitable for Its Members

Multiple Choice

Even though a cartel is often profitable for its members, cartel arrangements contain the seeds of their own disintegration because

A) a price maintained above each cartel member's marginal cost provides each member with an incentive to offer secret price reductions to attract additional customers.
B) the profits earned by cartel members will induce others to enter the industry.
C) cartel members will attempt to garner more of the total profit for themselves by cheating on their agreement with other members.
D) all of the above are correct.