Each Member of a Cartel

question 133

Multiple Choice

Each member of a cartel

• A) faces a temptation to cheat on the agreement because lowering its price slightly below the established price will usually increase the firm's sales and profit.
• B) faces a temptation to cheat on the agreement because raising its price slightly above the established price will usually increase the firm's sales and profit.
• C) has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually have no impact on the firm's sales and profit.
• D) has no temptation to cheat on the agreement because raising its price slightly above the established price will usually decrease the firm's sales and profit.
• E) has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually lower the firm's sales and profit.

---

Definitions:

Harmonious Integration

A concept emphasizing the smooth combination or coordination of various elements or parts to create a unified whole.

Inner Courtyard

A space within a building, especially in ancient or traditional architecture, that is open to the sky and provides light and ventilation.

Building and Garden

The combination of architecture and landscaped gardens in a designed space, emphasizing harmony between built and natural environments.

Folk Art Movement

A style and category of art that reflects cultural identity, traditional practices, and the craft of artisans and amateurs, often emphasizing community and heritage.