Which of the Following Statements Regarding Cartels Is Not Correct

question 45

Multiple Choice

Which of the following statements regarding cartels is not correct?

• A)Cartels are sometimes difficult to maintain because a member can cheat by raising its price above the agreed price.
• B)Cartels restrict industry output in order to raise price.
• C)Cartels are inherently stable, because oligopolistic firms rarely change price.
• D)are easier to establish and maintain when the cost functions of the individual members are more similar to one another.

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Definitions:

Disgust

An emotional response of revulsion towards something considered offensive, distasteful, or unpleasant.

Superego

In Freudian psychoanalysis, a component of the psyche that operates as the ethical component of personality, providing moral standards and aspirations.

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.

Ego

The part of the psyche that mediates between the conscious, the unconscious, and the external world, according to Freudian psychology.