Cartels Do Not Last Because Their Members Find Them Difficult

question 133

Multiple Choice

Cartels do not last because their members find them difficult to maintain since:

• A) each of the member firms can attain lower costs outside the cartel.
• B) each firm in the cartel can gain from secret price cuts.
• C) all the firms prefer an expansion in industry supply.
• D) all the firms face less elastic demand curves when outside the cartel.

Apply human capital theory to various scenarios, including job market choices and wage determination.

Appreciate the impact of technological changes and globalization on the demand for skilled versus unskilled labor.

Understand the role of non-monetary rewards in labor supply decisions and job satisfaction.

Understand the impact of international trade on the demand for skilled versus unskilled labor.