Even Ideal Cartels Tend to Be Unstable Because

question 9

Multiple Choice

Even ideal cartels tend to be unstable because

• A) firms typically prefer competition to collusion as competition,because it leads to more profits.
• B) collusion leads to lowest possible overall profits in the industry.
• C) oligopolistic managers are extremely risk loving.
• D) firms can benefit by secretly selling more than they promised the other firms
• E) all of the above

---

Definitions:

Negotiable Instruments

Financial documents that guarantee the payment of a specific amount of money, either on demand or at a set time.

Paper Payable

A financial instrument or document that promises the payment of a specific amount of money either on demand or at a specified future date.

"On Demand"

Refers to the immediate availability or access to products, services, or financial transactions upon request.

Writing

The act of marking coherent words on a surface to communicate information, or the physical record of such words.