If a Cartel Is Working Properly,its Firms Will Likely Be

question 8

Multiple Choice

If a cartel is working properly,its firms will likely be producing where (MC_i is each firm i's marginal cost,MR is market marginal revenue,and P is price) :

• A) MC_i = MR.
• B) MC_i > MR.
• C) MC_i < MR.
• D) P = MR.
• E) P < MR.

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Definitions:

Cohesiveness

The degree to which members of a group or organization are united in their pursuit of common goals and exhibit loyalty to each other.

Society

A group of individuals living together in a more or less ordered community, sharing cultures, traditions, and values.

Industrialization

The development of industries in a country or region on a wide scale.

Wage Gap

The difference in earnings between different groups of people, often based on gender, race, or occupation.