Each Member of a Cartel

question 133

Multiple Choice

Each member of a cartel

• A) faces a temptation to cheat on the agreement because lowering its price slightly below the established price will usually increase the firm's sales and profit.
• B) faces a temptation to cheat on the agreement because raising its price slightly above the established price will usually increase the firm's sales and profit.
• C) has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually have no impact on the firm's sales and profit.
• D) has no temptation to cheat on the agreement because raising its price slightly above the established price will usually decrease the firm's sales and profit.
• E) has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually lower the firm's sales and profit.

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Definitions:

Illness

A state of poor health, either physically or mentally, often characterized by the presence of disease symptoms or dysfunction in body processes.

Prized Possessions

Objects that are highly valued or treasured by their owners, often carrying emotional significance or memories.

Unnecessary Risks

Taking actions that have potential for negative outcomes without sufficient reason or benefit.

Suicide

The intentional act of causing one's self to die.