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Question
Cartels are inherently unstable because ___
Options:
A .  firms in a collusion have the incentive to sell at lower than agreed prices and drive up profits.
B .  forming cartels and price fixing is illegal
C .  all firms in the market have to agree to form cartels and when a new firm enters the market, the cartelisation has to happen again.
D .  All of these
Answer: Option D
:
D
All of the listed reasons contribute to the instability of cartels.

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