Some Market Conditions Make Cartels MORE Likely to Succeed in Collusion.Which

question 20

Multiple Choice

Some market conditions make cartels MORE likely to succeed in collusion.Which of the following will make collusion more successful?

• A) The products are heterogeneous
• B) The orders are small and frequent
• C) The firms are all about the same size
• D) Costs differ across the firms
• E) Firms are geographically widely scattered

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Definitions:

Reorder Period

The time interval between placing orders for supplies or inventory to replenish stock.

Lead Time

The total time that elapses between the initiation and completion of a process, such as the period from placing an order to delivery of a product.

Re-Order Point

The reorder point is the level of inventory that triggers an action to replenish that particular inventory stock, ensuring a seamless operation without stockouts.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price level at a given time.