Which Makes It Easier for a Cartel to Operate Effectively

question 42

Multiple Choice

Which makes it easier for a cartel to operate effectively over time?

• A) Demand for the cartel's product decreases.
• B) Demand for the cartel's product becomes more elastic.
• C) The number of substitutes for the cartel's product increases.
• D) Each member firm observes the pricing and output decisions of other firms in the cartel.

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Definitions:

Customer Relationship Management

A strategy in business that focuses on developing and maintaining lasting relationships with customers to enhance loyalty and retention.

Types of Customers

Refers to the different categories or segments of customers each with their own specific needs, behaviors, and characteristics.

Net Promoter Score

A metric used to gauge the loyalty of a firm's customer relationships, based on how likely customers are to recommend the company to a friend or colleague.