Other Things Being Equal, a Firm in a Cartel Will

question 109

Multiple Choice

Other things being equal, a firm in a cartel will most likely cheat on a price-fixing agreement by

• A) increasing price and restricting its output.
• B) organizing promotions of the product.
• C) secretly increasing sales to a large number of small customers.
• D) secretly lowering price and increasing sales to a few customers.

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Definitions:

Steiner

A psychologist known for his formulations on group productivity, specifying that the actual productivity of a group is based on its potential productivity minus losses due to faulty group processes.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires.

Social Facilitation

The phenomenon where an individual's performance improves when in the presence of others.

Attentional Consequences

The outcomes or effects on cognitive processes resulting from where and how attention is focused.