Cartels Made Up of a Large Number of Firms Are

question 187

Multiple Choice

Cartels made up of a large number of firms are unstable because each firm in the cartel:

• A)has an incentive to cheat.
• B)is producing a relatively homogeneous product in which entry barriers are low.
• C)does not have to worry about losses.
• D)recognizes that the market size is relatively stable.

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Definitions:

Trade

The exchange of goods and services between people or entities, often in exchange for money, which is a fundamental aspect of economic activity and interaction.

Pueblos

Indigenous communities in the Southwestern United States, known for their unique adobe and stone dwellings and rich cultural heritage.

Mississippians

Residents or natives of Mississippi, a state in the southern United States known for its rich cultural heritage, historical significance in the civil rights movement, and agricultural output.

Early Sixteenth Century

A period marking the early 1500s, characterized by significant events such as the beginning of the Renaissance in Europe and the exploration of the New World.