If a Cartel Is Unable to Monitor Its Members and Punish

question 56

Multiple Choice

If a cartel is unable to monitor its members and punish those firms that violate the agreement,then

• A) the member firms will each act as price setters.
• B) the cartel will prosper in the long run.
• C) the market will become a monopoly.
• D) the cartel will fail.

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Definitions:

Habitat Degraded

Refers to the deterioration in quality and reduction in the value of habitats, affecting the organisms living there due to natural or human-induced causes.

Soil Ecology

The study of how soil organisms interact within their environments and contribute to soil health and fertility.

Monocultures

The agricultural practice of growing a single crop, plant, or livestock species in a field or farming system at a time, potentially reducing biodiversity.

Genetically Modified

Organisms whose genetic material has been altered using genetic engineering techniques.