Most Cartels End or Cease to Be Effective Because

question 35

Multiple Choice

Most cartels end or cease to be effective because:

• A)of enforcement of antitrust legislation.
• B)of the incentive to cheat on the cartel agreement.
• C)the dominant member firm buys out the other firms.
• D)consumers discover the cartel agreement and buy instead from other firms.

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Definitions:

Book Value

The net value of a company's assets, subtracting its liabilities, as recorded on the balance sheet.

Liquid Assets

Assets that can be quickly converted into cash without significant loss of value, such as stocks or government bonds.

Inventory

A complete list of items such as property, goods in stock, or the contents of a building.

Non-Cash Expenses

Expenses recorded on the income statement that do not involve an actual cash flow, such as depreciation and amortization.