A Cartel Can Only Succeed in the Long Run

question 66

Multiple Choice

A cartel can only succeed in the long run

• A)with authorization from the government.
• B)if there is free entry of new firms.
• C)if all firms are experiencing decreasing returns to scale.
• D)if the long-run market supply curve is elastic.
• E)if member firms cooperate and resist their individual incentives.

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Definitions:

Quality Leadership

A management approach that emphasizes excellence in products and services through leadership commitment and continuous improvement practices.

Competing on Differentiation

A strategy where businesses aim to distinguish their products or services from competitors through unique features, quality, or service.

Mass Production

The manufacture of large quantities of standardized products, often using assembly lines or automated technology.

Experience Differentiation

Engaging a customer with a product through imaginative use of the five senses, so the customer “experiences” the product.