Which of the Following Is NOT a Reason Why Cartels

question 34

Multiple Choice

Which of the following is NOT a reason why cartels tend to collapse and lose their power?

• A) new entrants and demand response
• B) government prosecution and regulation
• C) cheating by the cartel members
• D) They mistakenly raise the price too high.

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Definitions:

Treble Damages

A legal remedy that allows a court to triple the amount of the actual/compensatory damages to be awarded to a complainant.

Cooperation

A process where groups of individuals or organizations work together to achieve mutual benefits or common goals.

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at promoting fair competition and preventing monopolies by prohibiting certain types of discriminatory prices, mergers, and acquisitions.

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 aimed at regulating competition among enterprises, prohibiting monopolistic practices and promoting fair competition.