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Cartels Tend to Collapse and Lose Their Power for Three

question 61

Essay

Cartels tend to collapse and lose their power for three reasons. List these reasons and briefly explain why each of them causes cartels to collapse.


Definitions:

Term Deposit

A bank deposit with a fixed term and usually a higher interest rate than a savings account, requiring funds to remain deposited for a specific period.

Maturity

The final payment date of a loan or financial instrument at which point the principal (and all remaining interest) is due to be paid.

Invested

The act of allocating resources, usually money, into something to earn a return or profit.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

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