Even Though a Cartel Is Often Profitable for Its Members

question 28

Multiple Choice

Even though a cartel is often profitable for its members, cartel arrangements contain the seeds of their own disintegration because

• A) a price maintained above each cartel member's marginal cost provides each member with an incentive to offer secret price reductions to attract additional customers.
• B) the profits earned by cartel members will induce others to enter the industry.
• C) cartel members will attempt to garner more of the total profit for themselves by cheating on their agreement with other members.
• D) all of the above are correct.

---

Definitions:

Parental Responsiveness

The extent to which parents respond to their child's needs in a sensitive and supportive manner.

Acceptance

An aspect of parental responsiveness that includes being affectionate, praising the child, being involved in the child’s life, and showing concern for the child’s needs; correlated with children’s self-esteem and social adjustment.

Demandingness

The degree to which parents or guardians expect and require responsible, mature behavior from their children.

Moderately Achievement Oriented

Refers to an individual's tendency to aspire for success and accomplishment in tasks with a balanced level of ambition and realism.