Once a Cartel Establishes Its Profit-Maximizing Price

question 115

Multiple Choice

Once a cartel establishes its profit-maximizing price,

• A) entry into the industry of new competitors will not affect the cartel's profits.
• B) output changes by cartel members have no effect on the market price.
• C) each cartel member is tempted to cheat on the cartel price in order to add to its profit.
• D) all cartel members have a strong incentive to adhere to the agreed-upon price.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Profitability Indexes

A calculation used to assess the attractiveness of an investment by dividing the present value of cash flows by the initial investment.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated by dividing the average return from an investment by the initial cost.

Profitability Index

A financial tool used to determine the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Internal Rate of Return

A financial metric that estimates the profitability of potential investments by calculating the discount rate that makes the net present value of all cash flows from a project equal to zero.