It Is Common for a Cartel to Collapse When One

question 80

Multiple Choice

It is common for a cartel to collapse when one or more firms in the cartel

• A)exceed its output quota.
• B)produce more efficiently than other member firms.
• C)is much larger than other cartel members.
• D)increase its price above the monopoly price.
• E)exit the industry.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually in the form of cash or additional stock, from its earnings.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Cash Dividend Payment

A distribution of a company's earnings declared by the board of directors to its shareholders in the form of cash.

Financing Activities

Financing activities are transactions between a company and its creditors or investors, including issuing equity, paying dividends, and obtaining or repaying loans, which are used to fund the company's operations or expansions.