It Is Difficult to Maintain a Cartel for a Long

question 2

Multiple Choice

It is difficult to maintain a cartel for a long period of time.Which one of the following is the most important reason?

• A)Each firm has an incentive to collude.
• B)Other firms will enter the industry.
• C)Firms in the cartel will want to raise the price.
• D)Consumers will eventually decide not to buy the cartel's output.
• E)Each firm has an incentive to cheat.

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Definitions:

Addicted To Nicotine

The condition of being physiologically dependent on nicotine, characterized by an uncontrollable urge to consume nicotine through smoking or other means.

Smoking For Pleasure

The act of smoking tobacco or other substances, not out of addiction, but for enjoyment or relaxation.

Deadliest Behavior

Actions or habits that significantly increase the risk of mortality, such as smoking or reckless driving.

Cigarette Smoking

The act of inhaling and exhaling the smoke of tobacco or a drug.