The Key Behavioral Assumption of the Cartel Theory Is That

question 140

Multiple Choice

The key behavioral assumption of the cartel theory is that oligopolists in an industry

• A)try to maximize sales instead of profits.
• B)act as if they are perfect competitors.
• C)act in a manner consistent with there being only one firm in the industry.
• D)try to create a demand for their products by way of advertising.
• E)none of the above

---

Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them a claim on the company's profits and assets.

Capital Structure

The composition of a company's funding via debt and equity, outlining how it finances its operations and growth.

Debt

An amount of money borrowed by one party from another, to be paid back with interest.

Finance Operations

Activities related to managing an organization's money, including income and expenses, to maximize profits and ensure sustainability.