One of the Reasons Cartels Are Considered Unstable Is That

question 81

Multiple Choice

One of the reasons cartels are considered unstable is that

• A) individual members of the cartel have an incentive to violate the cartel agreement.
• B) member firms reduce their investment, thereby becoming uncompetitive over time.
• C) there are wide fluctuations in price as cartel members vary their output.
• D) consumers seek out substitutes to the cartel product.
• E) it is inefficient to manage individual firms collectively.

---

Definitions:

Pareto Chart

A type of chart used in quality control and project management that combines both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line.

Cumulative Total

The sum of all values in a sequence, typically used in reference to numerical data or financial transactions.

Frequency

The rate at which something occurs over a particular period of time or in a given sample.

Deming Approach

A continuous quality improvement model consisting of a logical sequence of four key stages: Plan, Do, Check, Act (PDCA).