Although Cartels Can Increase the Profits of Their Members, They

question 22

Multiple Choice

Although cartels can increase the profits of their members, they are often difficult to maintain for extended periods of time because:

• A) consumer pressure often forces cartels to disband.
• B) managers realize that while the cartel increases profits in the short run, profits in the long run will be lower because of cartel activity.
• C) there is an incentive for each member to further increase its profits by cheating on the cartel agreement.
• D) producers may not understand the benefits of maintaining the cartel.

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Definitions:

Conditioned Response

A learned reaction to a conditioned stimulus that occurs because of previous conditioning.

Unconditioned Stimuli

Stimuli that naturally and automatically trigger a response without any prior learning or conditioning.

Systematic Desensitization

A graduated counterconditioning treatment for phobias in which the relaxation state is associated with the phobic object.

Fear Hierarchy

A ranked list of fears or phobias, typically used in exposure therapy, starting from least to most frightening scenarios for an individual.