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Which of the Following Statements Is True

question 31

Multiple Choice

Which of the following statements is true?


Definitions:

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize profits illegally or unethically.

Marginal Cost

The change in total production cost that comes from making or producing one additional unit of a good or service.

Fixed Cost

Costs that do not change with the level of output produced, such as rent and salaries.

Profits

The financial gain obtained when the revenue from business activities exceeds expenses, costs, and taxes.

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