A Reason Why It Is Difficult for Producers to Maintain

question 261

Multiple Choice

A reason why it is difficult for producers to maintain a cartel is that:

• A) The elasticity of demand for the cartel's output decreases over time
• B) Producers in the cartel have the economic incentive to cheat
• C) Economic profits discourage other producers from entering the industry
• D) Producers in the cartel have the motivation to lower price but not to raise price

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Definitions:

Danger

The possibility of harm or injury; the potential for a situation, action, or event to cause physical, emotional, or environmental damage or risk.

Peripheral Vision

The portion of vision that occurs outside the direct line of sight, enabling humans to detect movement and objects around them without directly looking at them.

Rods

In the eye, rod-shaped receptors of light that are sensitive to intensity only. Rods permit black-and-white vision.

Newborns

Refers to infants from birth to about 2 months of age, characterized by rapid physical and neurological development.