The Success of a Cartel Rests Upon

question 263

Multiple Choice

The success of a cartel rests upon

• A) inducing all members to limit their combined output and charge the same price.
• B) inducing all members to differentiate their products and charge different prices.
• C) making exit from the cartel as nearly costless as possible.
• D) discouraging some firms in the market from joining.

---

Definitions:

Productivity

measures the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process.

Increased Outputs

indicate a higher level of production or activities, often resulting from efficiency improvements or higher demand.

Constant Amount

A fixed value that does not change over time or under varying circumstances.

Socialism

Socialism is a political and economic theory advocating for collective or governmental ownership and administration of the means of production and distribution of goods.