Cartel Members Have an Incentive to Cheat on the Cartel

question 7

Multiple Choice

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

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

---

Definitions:

Signs of Depression

Physical or psychological symptoms indicating depression, such as persistent sadness, loss of interest in activities, and changes in appetite or sleep patterns.

Medications

Substances used in diagnosing, treating, or preventing disease and as part of therapy.

Financial Status

The current state of one’s monetary resources, assets, liabilities, and overall economic position.

Erikson's Theory

A theoretical framework proposed by Erik Erikson that outlines eight stages of psychosocial development throughout the lifespan, from infancy to late adulthood.