Each Member of a Cartel

question 133

Multiple Choice

Each member of a cartel

• A) faces a temptation to cheat on the agreement because lowering its price slightly below the established price will usually increase the firm's sales and profit.
• B) faces a temptation to cheat on the agreement because raising its price slightly above the established price will usually increase the firm's sales and profit.
• C) has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually have no impact on the firm's sales and profit.
• D) has no temptation to cheat on the agreement because raising its price slightly above the established price will usually decrease the firm's sales and profit.
• E) has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually lower the firm's sales and profit.

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Definitions:

Single-Food Diet

A dietary regimen that involves consuming only one type of food for a certain period of time, which is nutritionally unbalanced and not recommended.

Nutritionally Balanced

A diet comprising the correct proportions of all the necessary nutrients required for healthy body functioning.

Ideal Weight

A weight range deemed optimal for an individual's health, taking into account factors such as age, sex, and height.

Regular Exercise

Engaging in physical activity on a consistent basis to improve or maintain one's health and fitness.