What Is the Incentive for a Firm to Join a Cartel

question 152

Multiple Choice

What is the incentive for a firm to join a cartel?

• A)to be able to earn profits in the long run but not in the short run
• B)to be able to earn larger profits than if it was not part of the cartel
• C)to completely insulate itself from competition
• D)to produce a larger amount of output than if it was not part of the cartel

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and remember information in a way that confirms one's preexisting beliefs or hypotheses.

Communication Episode

A specific instance of communication that includes a series of interactions and the context in which it takes place.

Cultural Information

Knowledge related to the customs, beliefs, and practices of different societies and cultures.

Professional Behaviour

The conduct or manner that is deemed appropriate and ethical in a professional setting.