What would be the principal obstacle preventing a cartel from emerging in the production of beef?

 

A cartel is a type of oligopoly. This subcategory of market structure is characterized by the high barriers to entry and the small number of competitors in the industry. Therefore, one of the main obstacles is the number of competitors. In almost all the countries of the world, beef production is a common industry in which there is a large number of competitors. Additionally, the barriers to entry are not necessarily high and that's why new competitors are able to enter the market. Due to this large number of competitors, it is almost impossible to arrange an agreement to limit production and set high prices which is characteristic of cartels.