4144EconomicsMedium
In which of the following circumstances would a cartel be most likely to work?
AThe fast-food market where there are a large number of producers but the demand for fast food is inelastic
BThe market for copper, where there are very few producers and the product is standardized.
CThe coffee market where the product is standardized and there are a large number of coffee growers.
DThe automobile industry, where there are few producers but there is great product differentiation.
Correct answer
B. The market for copper, where there are very few producers and the product is standardized.
Explanation
The correct answer is The market for copper, where there are very few producers and the product is standardized..