Several questions in this problem set are based on the 8/19/12 Wall Street Journal article "Cartel Pushes Up Price of Rubber." This article is at the end of the module on Antitrust Policy. Try to read the entire article carefully first... and then see if you can answer the questions (rather than fishing out the answer each time). Obviously you will go back and check to make sure you have it correct ... but to absorb the content it is best read it all first before going back.

What challenges (mentioned in the article) does the cartel face as they try to raise prices?

A. Cheating, competition from non-members, substitution away from rubber

B. US may penalize the cartel by implementing a quota

C. The WTO is investigating and may find the practice illegal - leading to penalties to be placed on the governments of the members.

D. All of the above are mentioned