You Read That 25 Firms That Grow and Export Peanuts

question 25

Multiple Choice

You read that 25 firms that grow and export peanuts to the United States decide to form a cartel. The cartel aims to raise the price of peanuts and reduce output to increase profits for the peanut growers. You predict that this cartel will probably

• A) not be successful because the number of firms is unmanageable and there are a number of good substitutes for peanuts.
• B) not be successful because there are too few firms that are trying to organize the cartel.
• C) be successful because the demand for peanuts is very elastic.
• D) be successful because it will be very easy to enforce the rules among only 25 firms.

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Definitions:

Metabolized

The process of breaking down substances within the body to produce energy, or the conversion of substances into other forms within the body.

Thyroid Follicle

The basic structural unit of the thyroid gland, consisting of a spherical grouping of thyroid cells surrounding a cavity filled with colloid.

Parafollicular Cells

Specialized cells in the thyroid gland that produce calcitonin, a hormone involved in regulating calcium levels in the blood.

Isthmus

A narrow strip of land connecting two larger land areas or a constricted part of an organ connecting two larger parts.