For Cartels, as the Number of Firms (Members of the Cartel)

question 94

Multiple Choice

For cartels, as the number of firms (members of the cartel) increases,

• A)the monopoly outcome becomes more likely.
• B)the magnitude of the price effect decreases.
• C)the more concerned each seller is about its own impact on the market price.
• D)the easier it becomes to observe members violating their agreements.

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Definitions:

Descent Groups

Social groups whose membership is based on lineage or ancestry, tracing relationships through either maternal or paternal lines.

Common Ancestor

An individual or species from which two or more descendant species or individuals are derived in evolutionary biology, indicating a point of divergence in their lineage.

Descent Group

A social group whose members talk about common ancestry.

Lineage Group

A social group tracing descent from a common ancestor, thus forming a basic unit in the social structure of many societies.