If Anything, a Cartel Is Likely to ________ and ________

question 142

Multiple Choice

If anything, a cartel is likely to ________ and ________ power over time.

• A) strengthen; gain
• B) collapse; lose
• C) go bankrupt; then reorganize under bankruptcy law and gain
• D) operate in competitive markets; price discriminate to gain

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Definitions:

Price Floor

A minimum price, set by law or regulation, that must be paid for a good or service; often implemented to protect producers.

Price Support

Government interventions in the market to maintain the price of a commodity at a certain level.

Demand Curve

A chart that illustrates the link between a product's price and the amount of the product that buyers are prepared and capable of buying at different price levels.

Government Purchase

The buying of goods and services by government agencies, contributing to public sector spending.