A Cartel Exists When

question 26

Multiple Choice

A cartel exists when:

• A) a number of firms get together and agree on a policy of managing operations in a way that will maximize the joint profits of the group.
• B) a number of firms get together and agree on a policy of managing operations in a way that will maximize the profits of the dominant member of the group.
• C) a group of firms have joined together to make agreements on pricing but not on market strategy.
• D) a group of firms have joined together to make agreements on market strategy but not on pricing.
• E) a number of firms get together and agree on a policy of managing operations in a way that will maximize the profits of the largest four of five members of the group.

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Definitions:

Keystone Species

Keystone species are species that have a disproportionately large effect on their community or ecosystem relative to their abundance, playing a critical role in maintaining the structure of an ecological community.

Community

In ecology, a community is a group of interacting species living in the same area, sharing a common environment.

Small Numbers

A numerical quantity categorized as being less than some arbitrary value, often context-specific.

Keystone Species

A species that plays a critical role in maintaining the structure of an ecological community, affecting many other organisms in the ecosystem.