Which of the Following Quotes Shows Cheating on a Cartel

question 77

Multiple Choice

Which of the following quotes shows cheating on a cartel in the widget industry?

• A)"I am producing extra widgets, even though it costs me short-run profit, to stop Wally's Widgets from expanding into my market."
• B)"I am producing more widgets than Wally and I agreed to in our talk last week."
• C)"If only Wally and I could agree on a higher price, we could make more profit."
• D)"I have been spending extra on research and development of my new two-way widget."
• E)None of the above

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Definitions:

Inductive Reasoning

A method of reasoning in which conclusions are drawn from specific examples or evidence, moving from the particular to the general.

General Principle

A fundamental truth, law, or concept that serves as the foundation for a system of belief or behavior or for a chain of reasoning.

Predictions

Statements or assertions about what will happen in the future, often based on observation, hypothesis, or statistical analysis.

Heuristic

A mental shortcut or rule of thumb that simplifies decision making, not guaranteed to be optimal, perfect, or rational, but useful for making quick decisions.