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:

Exercise

Physical activities undertaken to improve or maintain one's health and physical fitness.

Reduce

To make smaller or less in amount, degree, or size; a process of diminishing or decreasing.

Emotion-Based

Relating to, or influenced by, emotions rather than logic or reason.

Blunting

In psychology, the reduction or dulling of emotional or physiological response to a stressor or stimulus.