In What Type of Market Is a Cartel Possible

question 171

Multiple Choice

In what type of market is a cartel possible?

• A) a market in which there are only a few firms and barriers to entry exist
• B) a market in which firms sell a homogeneous good
• C) a market in which firms sell a differentiated good
• D) a market in which there are many firms

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Definitions:

Normal Debit

An account entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts, reflecting in the left column of a double-entry accounting system.

Normal Credit

In accounting, it refers to the balance side (either credit or debit) that is expected for a particular type of account; for liability accounts, equity accounts, and revenue accounts, it is typically a credit balance.

Asset

Resources owned or controlled by a company expected to provide future economic benefits.

Liability

A financial obligation or debt that a company is required to repay to another entity in the future.