It Is Common for a Cartel to Collapse When One

question 80

Multiple Choice

It is common for a cartel to collapse when one or more firms in the cartel

• A)exceed its output quota.
• B)produce more efficiently than other member firms.
• C)is much larger than other cartel members.
• D)increase its price above the monopoly price.
• E)exit the industry.

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Definitions:

Ingroup Behaviour

Actions and norms practiced by members within a group, which foster unity and differentiate the group from others, emphasizing shared identity and interests.

Cultural Group

describes a collection of individuals who share common cultural characteristics, such as language, traditions, and values.

Fundamental Attribution Error

Bias in attributing another’s behaviour more to internal than to situational causes.

Correspondence Bias

A general attribution bias in which people have an inflated tendency to see behaviour as reflecting (corresponding to) stable underlying personality attributes.