Which of the Following Would Make It Easier to Maintain

question 69

Multiple Choice

Which of the following would make it easier to maintain an effective collusive agreement in a cartel?

• A)An increase in the number of potential entrants into the industry.
• B)A decrease in the elasticity of demand for the cartel's product.
• C)An increase in the number of substitutes for the product produced by the cartel.
• D)A new method of pricing that makes it more difficult for each firm to monitor the prices that the other firms in the cartel are charging.

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Definitions:

Personal Computers

Electronic devices designed for individual use, capable of executing a wide range of applications, from word processing and web browsing to gaming and programming.

Normal Good

A good for which demand increases as consumer income rises, and decreases as consumer income falls.

Income Increase

An income increase refers to a rise in the amount of earnings received by an individual or household, which can affect purchasing power and economic status.

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Peanut Butter is a food paste or spread made from ground dry roasted peanuts, often containing additional ingredients that modify the taste or texture.