For a Cartel to Succeed

question 39

Multiple Choice

For a cartel to succeed,

• A)it does not need the cooperation of a majority of firms in the industry.
• B)there must be free entry of rival firms.
• C)consumers must have alternative products available to satisfy the same need.
• D)no major producer can remain outside the agreement of the cartel.
• E)the industry must have an elastic demand.

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Definitions:

Dopaminergic Hypothesis

A theory suggesting that the imbalance of dopamine levels in the brain is a significant factor in the development of certain psychiatric disorders, especially schizophrenia.

Freudian Cathartic Hypothesis

A theory suggesting that releasing and confronting pent-up emotions through talking about one’s problems can lead to psychological healing.

Psychoactive Drugs

Substances that, when taken into the body, alter brain function, resulting in temporary changes in perception, mood, consciousness, and behavior.

Central Nervous System

The part of the nervous system that consists of the brain and spinal cord, serving as the main control center for processing and sending out information throughout the body.