A Cartel Might Fail Because

question 77

Multiple Choice

A cartel might fail because

• A)it does not control enough of the output in a market to raise prices enough.
• B)there is an incentive for members to cheat.
• C)too many firms leave the cartel, causing the cartel price to fall.
• D)All of the above.

---

Definitions:

Statement Of Owner's Equity

A financial statement detailing changes in the equity of a company's owner over a reporting period.

Capital Changes

Adjustments or alterations in the equity or ownership capital of a company, often due to investments, dividends, or profits.

Accounting Period

A specific period of time for which financial activities are recorded and reported, such as a month, quarter, or year.

Withdrawals

Withdrawals indicate the amount of money or assets taken out from a business by its owner(s) for personal use.