Which of the Following Factors Is NOT Necessary to Form

question 24

Multiple Choice

Which of the following factors is NOT necessary to form a successful cartel?

• A)Members must be responsible for most of the industry's output
• B)Member firms should produce homogeneous output
• C)Members must be located in close proximity to each other
• D)The cartel must be able to divide the marketplace between member firms
• E)There must be a mechanism to prevent cheating by member firms

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Definitions:

Total Income

The aggregate amount of money earned by an individual or organization from all sources before taxes or deductions.

Marginal Productivity

The extra output that is produced by using one more unit of a variable input, while keeping the quantities of other inputs constant.

Value of Marginal Product

The additional revenue generated by employing one more unit of a factor of production, holding other factors constant.

Demand for Labor

The employers' desire for hire based on the available wages, the skill levels required, and the overall need for labor to perform tasks.