Cartels Are Difficult to Maintain Because

question 248

Multiple Choice

Cartels are difficult to maintain because

• A) antitrust laws are difficult to enforce.
• B) cartel agreements are conducive to monopoly outcomes.
• C) there is always tension between cooperation and self-interest in a cartel.
• D) firms pay little attention to the decision made by other firms.

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Definitions:

Stramenopiles

A diverse group of eukaryotic organisms that includes diatoms, brown algae, and water molds, characterized by the presence of straw-like hairs on their flagella at some stage in their life cycle.

Water Molds

Water molds, or Oomycetes, are a group of filamentous, fungus-like organisms living in water or damp environments, often causing diseases in plants and fish.

Flagellum

A slender, whip-like appendage that enables many protozoa, bacteria, and spermatozoa to swim.

Microvilli

Minute projections of the plasma membrane that increase the surface area of the cell; found mainly in cells concerned with absorption or secretion, such as those lining the intestine or the kidney tubules.