Cartels Would Be More Stable If

question 50

Multiple Choice

Cartels would be more stable if:

• A)firms that cheat on the agreement could be legally punished.
• B)firms that cheat on the agreement were better informed about the value of agreement.
• C)demand for the output was more variable.
• D)the cartel profit were higher than the profit each individual firm could earn without the cartel.

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Definitions:

Sample Size

The number of observations or data points collected in a study or used in a statistical sample.

Parameter

A numeric characteristic or measure that defines or summarizes a feature of a population or a model, such as a mean or a variance.

Greek Letters

Symbols from the Greek alphabet used in various fields such as mathematics, science, and engineering to represent variables, constants, and parameters.

Sampling Distribution

A statistical distribution that represents the range and frequency of possible outcomes for a statistic if an experiment were repeated many times under similar conditions.