When Oligopolists Join Together in a Cartel, They

question 25

Multiple Choice

When oligopolists join together in a cartel, they

• A)have chosen to ignore interdependence.
• B)have admitted that their behavior is interdependent.
• C)are planning to violate the law of supply and demand.
• D)are trying to behave like perfect competitors.

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Definitions:

Encourage Exports

Policies or incentives designed to increase a country's goods sold abroad, aiming to improve economic balance.

Currency

A system of money in general use in a particular country or economic system, facilitating the exchange of goods and services.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another.

British Pound

The British Pound, formally the pound sterling, is the currency of the United Kingdom, and one of the world's major currencies, traded extensively in the global foreign exchange markets.