Cartels are difficult to operate for which of the following reasons?

a) The work only if members keep to their agreed output
b) they are illegal worldwide
c) Firms in a cartel are likely to lose money
d) The products are perfectly competitive

Ans: a) The work only if members keep to their agreed output

Economics

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The joining of firms that are producing or selling a similar product is known as

A) a conglomerate merger. B) a horizontal merger. C) a vertical merger. D) economies to scale.

Economics

Assume the marginal propensity to consume (MPC) is 0.80 and the government cuts taxes by $100 billion. The aggregate demand curve will shift to the:

a. right by $80 billion. b. left by $200 billion. c. right by $400 billion. d. left by $400 billion. e. None of these.

Economics