Although Cartels Can Increase the Profits of Their Members, They

Multiple Choice

Although cartels can increase the profits of their members, they are often difficult to maintain for extended periods of time because:

A) consumer pressure often forces cartels to disband.
B) managers realize that while the cartel increases profits in the short run, profits in the long run will be lower because of cartel activity.
C) there is an incentive for each member to further increase its profits by cheating on the cartel agreement.
D) producers may not understand the benefits of maintaining the cartel.