One Factor That Has Prevented the Formation of Cartels for Producers

question 10

Multiple Choice

One factor that has prevented the formation of cartels for producers of commodities is that

• A) the demand for commodities tends to be price inelastic.
• B) substitute products exist for many commodities.
• C) commodity produces have dominated world markets.
• D) the production of most commodities is capital intensive.

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Definitions:

Crisis Impact

The effect or aftermath of a significant adverse event, often challenging the stability, reputation, or operations of an entity.

Faulty Airbags

Airbag systems in vehicles that have defects which can cause them not to deploy correctly in the event of a crash, potentially leading to injury or death.

Product Crisis

A significant problem or failure with a product that negatively impacts its users and can lead to a loss of trust in the brand.

Litigation Crisis

A crisis driven by a lawsuit (or the threat of one) that plays out in the court of public opinion as well as in the legal system.