Which of the Following Best Describes a Cartel

question 14

Multiple Choice

Which of the following best describes a cartel?

• A) As a monopolist, a group of monopolistically competitive firms that jointly reduce output and raise the price.
• B) As a monopolist, a group of cooperating oligopolists that jointly reduce output and raise the price.
• C) A monopolist that reduces output and raises price.
• D) A group of identical non-cooperative oligopolists that are able to reproduce a monopoly equilibrium through price rivalry.

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Definitions:

Monotheism

The belief in a single, all-powerful god, as opposed to religions that believe in multiple gods.

Mudarabah

An Islamic finance concept involving a partnership where one party provides capital, and the other provides expertise to undertake a business or investment project.

Islam

A monotheistic Abrahamic religion founded in the 7th century based on the Quran, believed by its followers to be the word of God as conveyed by the Prophet Muhammad.

Ethnocentrism

The belief in the superiority of one's own ethnic group or culture, often resulting in prejudice towards other groups.