Another Possible Source of Why Cartels Break Down Is the Growth

question 64

Multiple Choice

Another possible source of why cartels break down is the growth potential of the industry. Although industries with a lot of potential are more willing to invest in the time to form a collusive agreement, such growth potential also deters them from making this investment. Why would that be?

• A) High-growth industries are more likely to be monitored by the government.
• B) High-growth industries are less likely to face an inelastic demand curve.
• C) High-growth industries are more likely to have lots of entrants.
• D) High-growth industries are less likely to have the support of the government.

---

Definitions:

Saint John Altarpiece

An artwork, typically a panel painting, dedicated to Saint John the Baptist or Saint John the Evangelist, focusing on scenes from their lives or their significance in Christian theology.

Mérode Triptych

A fifteenth-century Flemish altarpiece painted by the Master of Flémalle, notable for its detailed depiction of the Annunciation in a domestic setting.

Melun Diptych

A pair of paintings by the Early Netherlandish master Jean Fouquet, created in the 15th century, renowned for its innovative use of portraiture and religious imagery.

Jean Fouquet

A French painter and miniaturist of the early Renaissance, known for his innovative use of color and perspective.