Which of the Following Is Evidence of an Ineffective Cartel

question 86

Multiple Choice

Which of the following is evidence of an ineffective cartel?

• A) Output changes are dictated by changes in demand.
• B) Price changes are dictated by changes in demand.
• C) Members do not agree on output quotas.
• D) All of these.

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Definitions:

Wage Disparity

The difference in wages earned by different groups of workers, often arising from factors such as occupation, education, experience, or gender.

Talent and Ability

The natural aptitude or acquired skills possessed by individuals that enable them to perform certain tasks or excel in certain fields.

Median Earnings

The middle value of income earned, such that half of earners make more and half make less, often used to measure central tendency of income distribution.

Compensating Differentials

Wage differentials that arise from the need to compensate workers for non-monetary aspects of a job, such as difficult working conditions or undesirable locations.