The Condition Under Which a Cartel Can Maintain Its Stability

question 85

Multiple Choice

The condition under which a cartel can maintain its stability is that:

• A)the barriers to entry should be relaxed.
• B)an identical product should be produced by the colluding firms.
• C)there should be a large number of firms in the market.
• D)there should be legal barriers to share agreements.
• E)the products of the colluding firms should be highly differentiated.

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Definitions:

Absolute Privilege

A legal immunity shielding individuals from liability for statements made in certain contexts, no matter the content or intent.

Perjury

The act of lying or making verifiably false statements under oath in a legal proceeding.

Assault

An intentional act by one person that creates an apprehension in another of an imminent harmful or offensive contact.

Seriously Injured

A condition where an individual has sustained severe physical harm, often requiring significant medical treatment.