Economics 9708 · AS & A Level · 7.6

7.6 — practice question

A cartel has been able to control output effectively. However, it has recently begun to show signs of collapsing. Which market characteristic could have led to this?

  • Aan agreement that the cartel produces a homogenous product
  • Ban increase in the number of small, independent producers of the good
  • Cstable patterns of demand for the good
  • Dtrademarks, acting as a barrier to entry to the market

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