One of the Reasons Cartels Are Considered Unstable Is That

question 121

Multiple Choice

One of the reasons cartels are considered unstable is that

• A)member firms reduce their investment,thereby becoming uncompetitive over time.
• B)it is inefficient to manage individual firms collectively.
• C)there are wide fluctuations in price as cartel members vary their output.
• D)consumers seek out substitutes to the cartel product.
• E)individual members of the cartel have an incentive to violate the cartel agreement.

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Definitions:

Biochemical Activity

Refers to the chemical processes and reactions that occur within living organisms, essential for maintaining life and health.

Behavioral Changes

Alterations in the pattern of human behavior that may result from experiences, interventions, or internal processes.

Personality Style

The combination of emotional, thought, and behavioral patterns unique to an individual that influences their reactions and interactions.

Estate System

A system of stratification in which the ownership of property and the exercise of power is monopolized by an elite or noble class that has total control over societal resources.