Most cartels cease to be effective because:
A. of the incentive to cheat on the cartel agreement.
B. the dominant firm buys out the other firms.
C. of strict enforcement of antitrust legislation.
D. consumers discover the cartel and buy from other firms instead.
Answer: A
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Multiplier effects occur when there is a change in spending which does not depend on income. Spending which does not depend on income is referred to as
A) coincident spending. B) nominal spending. C) autonomous expenditures. D) induced expenditures.
Steve Ballmer organized government spending data on the basis of four "missions" for government that he identified in the preamble to the U.S. Constitution. Which of the four "missions" had the highest level of spending at all levels of government?
A) Establish justice and ensure domestic tranquility. B) Provide for the common defense. C) Promote the general welfare. D) Secure the blessings of liberty to ourselves and our posterity.