The Key Behavioral Assumption of the Cartel Theory Is That

question 139

Multiple Choice

The key behavioral assumption of the cartel theory is that oligopolists in the industry act as if

• A)all firms in the industry are the same size.
• B)all firms in the industry are price takers.
• C)there is a dominant firm in the industry and many fringe firms.
• D)there is only one firm in the industry.
• E)none of the above

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Definitions:

Explanation

A statement or account that makes something clear or understandable, often providing the reasons for a phenomenon or event.

Argument

A set of statements or reasons given with the aim of persuading others that an action or idea is right or wrong.

Crime Scene

A location where an illegal act has occurred and evidence of the crime might be collected and analyzed.

Explanandum

The term explanatory in nature, referring to a statement or phenomenon that needs to be explained.