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:

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, and lower greenhouse gas emissions.

Environmental Costs

The negative impacts on the environment due to industrial processes, consumption patterns, or other human activities, often quantified in economic terms.

Virgin Materials

Raw materials that have never been processed or used before, often extracted directly from the Earth.

Hazardous Wastes

Hazardous wastes are materials that are dangerous or potentially harmful to people's health or the environment, often requiring special handling and disposal procedures.