Which of the Following Statements Regarding Cartels Is FALSE

question 38

Multiple Choice

Which of the following statements regarding cartels is FALSE?

• A) Cheating by cartel members is less profitable and easier to detect if there are fewer firms in the industry.
• B) New entrants can be prevented when the cartel-controlled good is limited in supply.
• C) Cartels should control natural resources that are rare and more valuable.
• D) Cartels are more successful if they are backed by government and the power of the law.

---

Definitions:

Puzzle

A problem or game that tests ingenuity, knowledge, or skill and often requires a solution or answer.

Jigsaw Classroom

The Jigsaw Classroom is an educational approach designed to promote cooperation and reduce competition among students by assigning them to interdependent roles in small, diverse groups.

Non-prejudiced People

Individuals who do not harbor prejudices, maintaining unbiased attitudes and behaviors towards others based on race, gender, religion, or other social categories.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to the feedback between belief and behavior.