Which of the Following Conditions Can Help Prolong the Life

question 127

Multiple Choice

Which of the following conditions can help prolong the life of a cartel?

• A) There are only a few firms in the market and they all belong to the cartel.
• B) There are many firms in the market that are not members of the cartel.
• C) It is difficult to know what price any cartel member is actually charging.
• D) The cartel has no ability to punish members who cheat on the cartel.

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Definitions:

Unconscious Processing

Cognitive operations that occur without conscious awareness, influencing perceptions, thoughts, and behaviors.

Equilibration

Piaget’s term for the tendency to seek a stable balance among cognitive elements; achieved through a balance between assimilation and accommodation.

Adaptation

The process of adjustment or change in response to new conditions or environments, a fundamental aspect of biological and psychological evolution.

Disequilibrium

A state of cognitive imbalance between existing knowledge and new experiences, often leading to learning in developmental psychology.