The Incentive to Cheat Within a Cartel Increases with an Increase

question 97

Multiple Choice

The incentive to cheat within a cartel increases with an increase in the following factors, except

• A) the number of firms in the cartel.
• B) economic performance and industry sales.
• C) the number of potential entrants into the industry.
• D) the cost differences among firms.

---

Definitions:

Venture Capitalists

Investors who provide capital to startups and small businesses with long-term growth potential.

Equity

Represents fairness or justice in the way people are treated and involves ensuring that everyone has access to equal opportunities.

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Post-money Valuation

The estimated value of a company after external financing and investments have been added to its balance sheet.