A Cartel Is a Group of Firms

question 74

Multiple Choice

A cartel is a group of firms

• A) acting separately to limit output, lower price, and decrease economic profit.
• B) acting together to limit output, raise price, and increase economic profit.
• C) legally fixing prices.
• D) acting together to erect barriers to entry.
• E) that compete primarily with each other rather than the other firms in the market.

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Definitions:

Present Value Tables

A set of tables used to calculate the present value of an amount of money to be received in the future by taking into account a specific interest rate.