Other Things Equal, Cartels and Similar Collusive Arrangements Are Easier

question 47

Multiple Choice

Other things equal, cartels and similar collusive arrangements are easier to establish and maintain

• A) when there are ample opportunities for the firms to make secret price concessions to selected buyers.
• B) during periods of business-cycle stability and full employment.
• C) when the demand and cost conditions of the participating firms differ substantially.
• D) when the number of firms is relatively large.

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Definitions:

True Owner

The individual or entity that has the lawful possession, title, and rights over a property or asset, regardless of any other claims.

Validly Accept

The proper agreement to an offer according to predefined rules, which results in a binding contract.

Legal Acceptance

The formal acknowledgment by the party to whom an offer has been made, agreeing to the terms of the offer, resulting in a binding contract.

True Value

An accurate assessment of an item's worth, based on its current condition and market demand.