Cartels Persist Despite Laws Against Them Because

question 66

Multiple Choice

Cartels persist despite laws against them because

• A)international cartels are legal.
• B)firms believe they can avoid detection and the penalties are small anyway.
• C)firms can coordinate without explicitly colluding.
• D)All of the above.

---

Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales over the short term, such as rent or salaries.

Model

A simplified representation, often mathematical, of a system or process used to analyze behavior, make predictions, or inform decision-making.

Waste Elimination

The process of identifying and removing unnecessary elements from processes or products to improve efficiency and reduce costs.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production inputs.