Cartels Are Difficult to Maintain Because

question 248

Multiple Choice

Cartels are difficult to maintain because

• A) antitrust laws are difficult to enforce.
• B) cartel agreements are conducive to monopoly outcomes.
• C) there is always tension between cooperation and self-interest in a cartel.
• D) firms pay little attention to the decision made by other firms.

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Definitions:

Offeror

An entity or person who puts forth a proposal or bid for a contract, indicating a willingness to enter into an agreement under specified terms.

Consideration

Something of value (such as money, services, or goods) that is exchanged between parties in a contract, making the agreement legally binding.

Offer and Acceptance

Fundamental principles in contract law where an offer proposal is made by one party and accepted by another, resulting in a legally binding agreement.

Agreement

A mutual understanding or arrangement between two or more parties outlining each party's rights and responsibilities.