What Is the Incentive for a Firm to Join a Cartel

question 152

Multiple Choice

What is the incentive for a firm to join a cartel?

• A)to be able to earn profits in the long run but not in the short run
• B)to be able to earn larger profits than if it was not part of the cartel
• C)to completely insulate itself from competition
• D)to produce a larger amount of output than if it was not part of the cartel

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Definitions:

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A French novelist, playwright, and journalist, known for his involvement in the Dreyfus Affair and his contributions to the literary school of naturalism.

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A French biologist, microbiologist, and chemist renowned for his discoveries of the principles of vaccination, microbial fermentation, and pasteurization.

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