A Cartel Can Only Succeed in the Long Run

question 66

Multiple Choice

A cartel can only succeed in the long run

• A)with authorization from the government.
• B)if there is free entry of new firms.
• C)if all firms are experiencing decreasing returns to scale.
• D)if the long-run market supply curve is elastic.
• E)if member firms cooperate and resist their individual incentives.

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Definitions:

Pharmaceutical Company

A commercial business licensed to research, develop, market, and/or distribute drugs, most commonly in the context of healthcare.

Emotional Intelligence

The capability to recognize, understand, manage, and reason with emotions in oneself and others, often linked to improved social relationships and leadership skills.

Empathy

Understanding another person’s point of view.

Emotional Intelligence

The capacity to identify, comprehend, regulate, and employ personal emotions constructively for successful communication, sympathizing with people, navigating obstacles, and resolving disputes.