A Cartel Is an Organization of Firms in Which There

question 18

True/False

A cartel is an organization of firms in which there is a dominant firm which dictates price and output decisions to the other member firms.

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Definitions:

Quart

A unit of liquid volume equal to two pints, approximately 0.946 liters in the United States.

Pound

A unit of currency used in the United Kingdom and other areas, or a unit of weight equal to 16 ounces.

Convex Preferences

Consumer preferences that signify a desire for diversified bundles of goods, represented by convex-shaped indifference curves.

Indifferent

A term used in economics and decision theory to describe a situation where an individual or consumer does not prefer one option over another.