It Is Difficult to Maintain a Cartel for a Long

question 2

Multiple Choice

It is difficult to maintain a cartel for a long period of time.Which one of the following is the most important reason?

• A)Each firm has an incentive to collude.
• B)Other firms will enter the industry.
• C)Firms in the cartel will want to raise the price.
• D)Consumers will eventually decide not to buy the cartel's output.
• E)Each firm has an incentive to cheat.

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Definitions:

Suicide Rates

The number of suicides per a certain number of people within a specified time frame, often per 100,000 individuals per year.

Psychological Disorders

Mental disorders characterized by dysfunctional patterns of thoughts, feelings, or behaviors that cause significant distress or impairment in personal functioning.

Victim of Crime

An individual who suffers physical, emotional, financial, or social harm as a result of a criminal act.

Nonsuicidal Self-injury

The act of deliberately harming one's own body without intending to commit suicide.