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DRAM is used to store data in PCs, and other consumer and industrial electronic products. DRAM manufacturing is a capital-intensive industry. In 2004, Elpida, Hynix, Infinelon, Micron, and Samsung produced 80% of the world DRAM supply. In the early 20005, executives of the five largest companies agreed to fix the prices of DRAMs for sale to computer manufacturers. They held meetings to discuss prices, and exchanged information on sales to particular customers.
a) How easy would it be to enforce the DRAM cartel? Be sure to discuss all relevant aspects.
b) Why did the DRAM cartel members provide sales information to each other?
c) Supposing that the DRAM cartel members wished to limit the exchange of information, which customers should they select to monitor?
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