Day: July 18, 2025

In which of the following circumstances would a cartel be MOST likely to operate?

Select ONE answer:

1. A market with an undifferentiated product and many producers
2. A market with differentiated products and few producers
3. A market with many producers and where demand for the product is inelastic
4. A market with few producers and an undifferentiated product

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > A cartel is most likely where there are few producers in the market, each of them producing a similar product.

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