Which of the Following Reflects the Incentive Structure Confronted by a Typical

question 173

Multiple Choice

Which of the following reflects the incentive structure confronted by a typical firm in a cartel?

• A) If I alone cheat, I'm better off; if everyone cheats, I'm worse off.
• B) I can never do better for myself than by following agreed-upon cartel policies.
• C) If everyone cheats, I'm better off and so is everyone else in the cartel.
• D) If I suspect others are planning to cheat, I'll do best for myself by deciding not to cheat.

---

Definitions:

Teenage Girls' Friendships

The relationships and social bonds formed between adolescent girls, often characterized by emotional closeness and support.

High-Achieving Students

Students who consistently show high levels of proficiency and performance in their academic endeavors.

Low-SES Family

Families characterized by low socioeconomic status, often facing financial constraints, limited educational opportunities, and reduced access to healthcare.

Parental Monitoring

The actions taken by parents or guardians to keep track of their children's activities, whereabouts, and associations to guide and protect them.