As the aggregate profit of a cartel can exceed the combined profits of the same firms acting

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As the aggregate profit of a cartel can exceed the combined profits of the same firms acting independently, firms have an incentive to form cartels and behave like a monopoly. However, cartels often fail for economic reasons. Why is this the case?

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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Question Posted: Mar 20, 2024 08:00 AM

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As the aggregate profit of a cartel can exceed the combined profits of the same firms acting

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Microeconomics

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