Cartel Members Have an Incentive to Cheat on the Cartel

question 113

Multiple Choice

Cartel members have an incentive to cheat on the cartel because:

• A) the cartel does not maximize profits.
• B) the cartel price is the competitive price.
• C) each member's output quota is too high.
• D) each member's MR is not equal to the cartel's MC.
• E) the industry profit would be higher under competitive conditions.

Comprehend the role of incentives and motivation in aligning employee efforts with organizational objectives.

Recognize the ethical issues associated with centralized organizational structures and communication barriers.

Understand the concept of power in organizational relationships and its ethical implications.

Learn about the influence of group norms and informal channels on ethical behaviors and organizational culture.

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Definitions:

r Values

A measure of the strength and direction of a linear relationship between two variables, ranging from -1 to 1.

Hypotheses Testing

A statistical method used to determine whether there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.

r Values

r Values, often denoted as the correlation coefficient, measure the strength and direction of a linear relationship between two variables.

Spearman Rank Correlation

A non-parametric measure of correlation that assesses the strength and direction of the association between two ranked variables, useful for ordinal data.