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:

Anatomy

The scientific term for the study of body structure.

Diseases

Medical conditions characterized by a dysfunction of the body or mind, often resulting in symptoms and impacting an individual's health.

Misalignment

A condition where parts of a structure or system are not properly aligned or positioned.

Different Directions

Deviating paths or courses of action, indicating variation or diversity in approaches or objectives.