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:

Economical Premium

A cost-effective payment or fee, usually for insurance, that provides value or savings over time.

Coverage

The extent to which insurance policies or financial protection plans will compensate for losses or damages incurred.

Financial-Planning Consultant

A professional who advises clients on managing their finances and achieving financial goals.

Vicarious Liability

A legal principle where one party is held liable for the actions or omissions of another, typically in an employer-employee relationship.