Asked by

Karley Theut
on Dec 12, 2024

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Cartel members have an incentive to cheat on cartel agreements because

A) the cartel cannot maximize profits.
B) the cartel price is the competitive price.
C) the demand curve for the firm is more elastic than the cartel's demand curve.
D) the industry profit would be higher under competitive conditions.

Cartel Members

Firms or countries that coordinate together to control prices and production in an industry, limiting competition.

Incentive to Cheat

Motivations or circumstances that encourage individuals or entities to break rules or agreements for personal gain.

Cartel Agreements

Formal agreements among competing firms in an industry to control prices, limit production, or divide markets, often illegal and against antitrust laws.

  • Assess the dynamics and aftermath in oligopolistic settings, paying close attention to both collusion and competition among market participants.
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JD
Jacara DarbyDec 17, 2024
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