Assume That the Ruby Market Shares of Six Different Countries

question 65

Multiple Choice

Assume that the ruby market shares of six different countries are 30%, 25%, 20%, 15%, 6%, and 4%. However, the quality of the rubies and the mining costs vary across the six countries. Which statement accurately describes the likelihood of success for a cartel among the ruby-mining companies in the six countries?

• A) There is a high likelihood of success since members have similar market shares.
• B) The likelihood of success is low because of uneven market shares, product quality, and costs of production.
• C) The likelihood is uncertain because uneven market shares and costs reduce chance of success, while uneven product quality increases the chance of success.
• D) The likelihood of success is high because having a small number of firms in the cartel is the most important factor influencing the success of the cartel.

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Definitions:

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Human Relations

The study and practice of creating harmonious and effective interactions in professional and personal settings.

Working Groups

Groups formed to achieve a specific goal or task, usually characterized by a focused and collaborative approach.

Hawthorne Studies

A series of influential experiments in industrial organization conducted in the 1920s and 1930s at the Hawthorne Works in Chicago, highlighting the impact of work conditions on productivity.