Recall the Application About the Failure of the Salt Cartel,why

question 24

Multiple Choice

Recall the application about the failure of the salt cartel,why did the salt cartels around the 19th century fail to get established,even though they paid new firms not to produce salt for a year?

• A)Individual firms cheated on the cartel by selling outside the cartel.
• B)Artificially high price also caused new firms to enter the market.
• C)Salt consumers found substitutes and brought the price of salt down.
• D)A and B are correct.

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Definitions:

Adrenal Gland

A gland located above the kidneys that produces hormones such as adrenaline and cortisol, which are critical for the body's stress response.

Corticosteroids

A class of steroid hormones produced in the adrenal cortex or synthesized; used medicinally to reduce inflammation and affect the immune system.

ACTH

Adrenocorticotropic Hormone, a hormone produced by the pituitary gland that stimulates the adrenal glands to release cortisol.

Frustration

A feeling of dissatisfaction or annoyance arising from unmet expectations or obstacles to achieving goals.