Cartels Are More Likely to Fail When _____

question 45

Multiple Choice

Cartels are more likely to fail when _____.

• A) the firms in the cartel produce identical products
• B) the marginal cost of production is high
• C) the number of firms forming the cartel is high
• D) the demand for the good is perfectly inelastic

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Definitions:

Cognitive Dissonance Theory

A psychological theory that suggests that individuals experience discomfort (dissonance) arising from inconsistent attitudes, beliefs, or behaviors and are motivated to reduce this discomfort by changing their attitudes, beliefs, or actions.

Severe Initiations

The concept that undergoing difficult or intense initiation processes can increase individuals' valuation and commitment to a group.

Painful Initiations

Rituals or rites of passage that involve undergoing discomfort or pain as a means of gaining entry into a group or society.

Questionable Act

Pertains to actions or behaviors that raise doubt regarding their morality, ethics, or legality, often eliciting scrutiny or criticism.