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8 July, 02:27

Each member of a cartel faces a temptation to cheat on the agreement because lowering its price slightly below the established price will possibly increase the firm's sales and profit

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  1. 8 July, 02:33
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    True

    Explanation:

    This is probably one of the greatest issues that cartels around the world face, since their agreements are difficult to maintain because it is very difficult to control the price and output policies of its members.

    Even the largest cartel in the world, the Organization of the Petroleum Exporting Countries (OPEC), has problems when it comes to monitoring the petroleum output of its members. When some countries need more money they just increase their petroleum production even if the rest of the cartel doesn't agree with it.
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