Cartels are difficult to maintain in the long run because:

A) they are illegal in all industrialized countries.
B) individual members may find it profitable to cheat on agreements.
C) it is more profitable for the industry to charge a lower price and produce more output.
D) entry barriers are insignificant in oligopolistic industries.

Cheating On Agreements

The act of knowingly violating the terms of an agreement or contract, often to gain an unfair advantage or benefit.

Cartels

Formal agreements among competing firms to control prices or exclude entry of a new competitor in a market.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.