Cartels Are Not Stable Because It Is in the Interest

question 53

Multiple Choice

Cartels are not stable because it is in the interest of each of the members to ____ beyond what is in the cartel's general interest.

• A)reduce production
• B)raise prices
• C)raise production
• D)lower prices

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Definitions:

Liabilities

Financial or legal obligations that an entity is required to pay or resolve in the future.

Promissory Note

A written promise to pay a specified sum of money to a designated party on demand or at a fixed or determinable future time.

Fictitious-Payee Rule

A legal principle that protects banks from liability when funds are withdrawn by a person not entitled to them, if the drawer's negligence contributed to the forgery.

Imposter Rule

A legal principle that addresses the liability for fraud when an impostor defrauds a third party.