After Participating Members of a Cartel Form an Agreement on Common

question 209

Multiple Choice

After participating members of a cartel form an agreement on common prices and output quotas, then an individual firm can increase its own profits by

• A) increasing production.
• B) increasing prices.
• C) leaving the cartel.
• D) incurring higher input costs.

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Definitions:

ADH

Antidiuretic hormone, a peptide hormone that regulates water reabsorption in the kidneys, contributing to the control of the water balance of the body.

Urine

A liquid waste product produced by the kidneys that contains urea and other wastes, which is excreted from the body through the process of urination.

Diabetes Mellitus

Condition caused by an insulin imbalance in the body; type 1 diabetes results from not enough insulin being produced; type 2 diabetes is caused by the body (specifically adipose tissue) not responding to insulin in the blood.

Glucose

Glucose is a simple sugar with the molecular formula C6H12O6, serving as a primary source of energy for most organisms.