The High Prices Charged by Cartels

question 218

Multiple Choice

The high prices charged by cartels:

• A) serve as a barrier to entry, allowing the cartel to earn above-normal profits.
• B) give an incentive for new firms to enter the industry, causing an expansion of industry output and lower prices.
• C) reduce the incentive for increased conservation.
• D) All of the answers are correct.

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Definitions:

Individual's Symptoms

Manifestations of disease or disorders experienced by a person, often indicating the presence of a health issue.

Cross-Generational Coalition

A problematic alliance formed between a member of one generation and another, bypassing the hierarchical boundary in a family system, often contributing to dysfunctional family dynamics.

Triangulation

A concept in family therapy where a two-person relationship becomes unstable and involves a third party to stabilize the relationship.

Second-Order Change

A fundamental transformation within a system or individual that alters the underlying structure, leading to a new way of operating or behaving.