Cartels Persist Despite Laws Against Them Because

question 66

Multiple Choice

Cartels persist despite laws against them because

• A)international cartels are legal.
• B)firms believe they can avoid detection and the penalties are small anyway.
• C)firms can coordinate without explicitly colluding.
• D)All of the above.

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Definitions:

Obligations

Responsibilities or duties bound by law or contract that one party owes another, including the repayment of debts or fulfilling contractual agreements.

Company

An organization engaged in commercial, industrial, or professional activities, which can be a legal entity separate from its owners.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.

Liquid Investment Assets

Liquid investment assets are financial assets that can be quickly converted into cash with minimal loss of value, such as stocks and bonds.