The Incentive to Cheat Within a Cartel Increases with an Increase

question 294

Multiple Choice

The incentive to cheat within a cartel increases with an increase in the following factors, except

• A)the number of firms in the cartel.
• B)economic performance and industry sales.
• C)the number of potential entrants into the industry.
• D)the cost differences among firms.

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Definitions:

Equity Theory

A theory of motivation that suggests employees are motivated to achieve a balance between their inputs and outputs in the workplace, comparing themselves to others in similar situations.

Psychological Contract

The unwritten, informal commitments and expectations between an employer and an employee, beyond the formal employment contract.

Procedural Justice

The fairness of the processes that lead to outcomes or decisions, particularly in the context of legal or organizational settings.

Distributive Justice

A principle concerned with the fair allocation of resources and benefits among members of a society or an organization.