All of the Following Are Problems Associated with Maintaining a Cartel

question 17

Multiple Choice

All of the following are problems associated with maintaining a cartel except

• A)cartels are illegal.
• B)a large amount of information is needed to coordinate a cartel.
• C)profits are not maximized by a cartel so it will evolve into a monopoly.
• D)each member of the cartel has an incentive to "chisel" by expanding output.

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Definitions:

Primary Motivator

The main influence or drive behind a person's actions or behavior, often related to fulfilling basic needs or achieving personal goals.

Financial Incentives

Monetary rewards or penalties intended to motivate particular behaviors or outcomes in individuals or organizations.