Which of the Following Statements Is TRUE

question 163

Multiple Choice

Which of the following statements is TRUE?
I. A cartel is a single firm with competitive market power.
II. A cartel is a group of firms that practice price discrimination in competitive markets.
III. A cartel is a group of firms that attempt to reduce market output.
IV. A cartel acts as if it were a monopolist in that market.

• A) I only
• B) II, III, and IV only
• C) II only
• D) III and IV only

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Definitions:

Bond Rating

An assessment of the credit quality of a bond by rating agencies, indicating its creditworthiness.

Capital Markets

Financial markets for buying and selling equity and debt instruments, including stocks and bonds, facilitating capital formation and growth.

Borrowing

The act of obtaining funds from a lender under the agreement to repay with interest.

Par Value

A nominal value assigned to a security, such as a share of stock, representing the minimum price at which the security can be issued.