Cartel Agreements Are More Likely to Break Down When

question 159

Multiple Choice

Cartel agreements are more likely to break down when

• A) there are few variations in market demand.
• B) new firms enter the market.
• C) participating firms earn huge profits.
• D) none of the above.

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Definitions:

Deindividuation

The feeling that one’s self has merged with a group.

Risky Shift

The tendency for group members, after discussion and interaction, to engage in riskier behavior than they would while alone.

Organizational Ritualism

A situation in which rules become ends in themselves rather than means to an end.

Normative Organizations

These are groups individuals voluntary join due to shared interests or values, such as charities or religious organizations.