The Milk Cartel in the United States

question 44

Multiple Choice

The milk cartel in the United States:

• A) ended when the government prosecuted the owners of four major milk producers who conspired to raise prices.
• B) is made legal and enforced by the government, and any firm that breaks the cartel is fined.
• C) frequently breaks down because of firm cheating.
• D) was put out of business because of new entrants.

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Definitions:

Percentage

A proportion or share in relation to a whole, typically expressed as a fraction of 100.

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to revenue.

Operating Income

The profit realized from a business's normal operations, calculated by subtracting operating expenses from gross profit.

Sales

The total amount of a company's revenues generated from goods or services provided to customers.