What are cartels and why they hard to operate?

A cartel is an organization of producers or sellers that aims to control the market by setting prices, output, or both. Cartels are illegal in many countries, but they can still be found in industries where there are high barriers to entry, such as natural resources or highly specialized industries.

Cartels can be hard to operate for several reasons:

* Cheating: Cartel members may cheat on the agreement by selling more products or charging lower prices than agreed upon. This can lead to price wars and other forms of competition that can damage the cartel's profits.

* Free Riders: Some companies may benefit from the cartel without actually joining it. This can lead to the cartel losing market share and profits.

* Government Intervention: Governments may regulate cartels or even break them up if they are found to be anti-competitive.

* Changes in Demand: Changes in demand for the cartel's products or services can make it difficult for the cartel to maintain its prices and output levels.

Despite these challenges, cartels can be successful if they are able to overcome them. Some of the most successful cartels in history include the OPEC oil cartel and the De Beers diamond cartel.