Boeing and Airbus Have Entered into a Cartel Agreement That

question 46

Multiple Choice

Boeing and Airbus have entered into a cartel agreement that will enable them to boost their profits. What occurs if Boeing decides to cheat on the agreement? i. Boeing lowers the price of its airplanes.
Ii) The total industry output increases.
Iii) The total profits in the airplane industry will decrease.

• A) i only
• B) ii only
• C) iii only
• D) i and ii
• E) i, ii and iii

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Definitions:

Culture

The shared beliefs, customs, practices, and social behavior of a particular nation or people.

Shared Rules

Agreed-upon guidelines or norms that govern the behavior of members within a group or society.

Norms

In test construction, established standards of performance.

Groupthink

The tendency for all members of a group to think alike for the sake of harmony and to suppress disagreement.