Which One of the Following Statements Is NOT True

question 142

Multiple Choice

Which one of the following statements is NOT true?

• A) A firm that chooses to cheat on a price-fixing scheme should consider the short-term gain in profits from cheating versus the long-term loss in profits from being punished.
• B) The duopoly-pricing strategy leads to negative economic profits.
• C) Cartels may break down because of the incentive to cheat.
• D) Price leadership arrangements are an implicit price-fixing scheme.

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Definitions:

Continuous Random Variable

A variable that can take an infinite number of values within a given range, often associated with measurements.

Measured Weight

The weight of an object or individual as determined through the use of scales or other measurement tools.

Binomial Experiment

An experiment or trial that fits the criteria of having a fixed number of trials, only two possible outcomes, independent trials, and a constant probability of success.

Number of Successes

In a statistical experiment, it refers to the count of times an event of interest occurs.