Q
In which of the following circumstances would a cartel be most likely to work ?
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A
A. The market for copper, where there are very few producers and the product is standardized.
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B
B. The fast-food market where there are a large number of producers but the demand for fast food is inelastic
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C
C. The coffee market where the product is standardized and there are a large number of coffee growers.
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D
D. The automobile industry, where there are few producers but there is great product differentiation.
Correct Answer:
A. A. The market for copper, where there are very few producers and the product is standardized.
