Cartels are inherently self-destructive because each member firm has the incentive to cheat on the cartel agreement
Indicate whether the statement is true or false
True . Unless the cartel can establish mechanisms to detect and punish cheaters, the agreement will fail.
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For most practical matters, economists assume that
A) individuals are risk neutral. B) individuals are risk lovers. C) individuals are risk averse. D) most individuals are risk lovers. E) most individuals are risk neutral.
The text describes various pricing strategies that oligopolists use. Which of the following is not one of these strategies?
a. game theory b. price leadership c. kinked demand d. cartel e. trial and error
A federal budget deficit exists when:
A. federal government taxation is decreasing. B. federal government spending is increasing. C. federal government spending exceeds tax revenues. D. federal government assets are less than liabilities.
When a price ceiling is imposed in a market,
a. a persistent shortage results b. a persistent surplus results c. sellers of the product are made better off d. no one is made better off e. quantity supplied is greater than the quantity demanded