The Incentive to Cheat Within a Cartel Increases with an Increase

question 97

Multiple Choice

The incentive to cheat within a cartel increases with an increase in the following factors, except

• A) the number of firms in the cartel.
• B) economic performance and industry sales.
• C) the number of potential entrants into the industry.
• D) the cost differences among firms.

---

Definitions:

State

A politically organized body of people under a single government, recognized as sovereign or possessing sovereignty.

Intermediate Courts of Appeal

Courts positioned between lower trial courts and the highest court of jurisdiction, typically handling appeals from the lower courts.

Supreme Court

The highest judicial body in a country, which has the ultimate legal authority to interpret laws and adjudicate major legal disputes.

State Court Systems

The hierarchy of courts within a particular state, including trial courts, appellate courts, and sometimes a state supreme court, responsible for interpreting and applying state law.