If an Oligopolist Is Part of a Cartel That Is

question 183

Multiple Choice

If an oligopolist is part of a cartel that is collectively producing the monopoly level of output,then that oligopolist has the incentive to lower production with the aim of

• A) lowering prices.
• B) increasing profits for the group of firms as a whole.
• C) increasing profits for itself, regardless of the impact on profits for the group of firms as a whole.
• D) None of the above is correct.

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Definitions:

Forces within

Internal factors or elements that influence the behavior, operation, or progress of an individual, group, or system.

Persistence of Effort

The sustained and continuous application of effort towards a goal despite challenges or obstacles.

Need Satisfaction

The fulfillment of a desire or requirement, especially as it pertains to consumer demands or employee expectations.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy, from physiological needs to self-actualization.