Which of the Following Statements Is False

question 158

Multiple Choice

Which of the following statements is false?

• A)On occasion, governments have helped to create and maintain cartels.
• B)Once a cartel agreement has been made, cartel members have an incentive to cheat on the agreement.
• C)A single cartel member may be better off with a cartel agreement that all members abide by (including itself) than with no cartel agreement at all.
• D)Cartels are easy to form and to maintain.

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Definitions:

Joint Process Costs

Costs incurred during a production process that yields multiple products simultaneously until the point of separation where products can be identified individually.

Make or Buy Decision

A decision-making process where a business evaluates the cost benefits of manufacturing a product in-house versus purchasing it from an external supplier.

Fixed Overhead

Costs that do not vary with production volume, such as rent, salaries, and insurance, required to operate a business regardless of production levels.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.