Suppose that the four largest maple syrup manufacturers in a country decide to collude and set prices in the market. Based on demand conditions every year, they decide the quantity of maple syrup that will be supplied to maintain a certain market price.
a. Is this an example of a Cournot oligopoly or a Bertrand oligopoly?
b. Under what conditions would this cartel succeed?
c. How likely are firms likely to cheat if the cartel decided to fix prices only once as opposed to fixing prices every year?