In the absence of any legally binding enforcement mechanism, individual cartel producers may find it advantageous to cheat on the agreements and engage in secret price concessions. a. true b. false

A

Explanation:

A cartel is when two or more producers of a certain good or service come together to regulate either the price of their good or the quantity of their goods that would be supplied. The producers that come together are usually competitors.

Cartels are usually formed in an Oligopoly.

An Oligopoly is when there are few large firms operating in an industry.

An example of a cartel is The Organization of Petroleum Exporting Countries (OPEC).

In the absence of any legally binding enforcement mechanism, individual cartel producers may find it advantageous to cheat on the agreements and engage in secret price concessions due to the potential of earning a higher profit.