Multiple Choice
Cartels often dissolve because
A) their members often set a time limit as to how long the cartel should exist.
B) their members often cheat on the cartel agreements because they have incentive to.
C) their members often find that they do not earn as high profits from the cartel as they had hoped to.
D) firms in a cartel face different costs than firms outside a cartel.
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q125: Concentration ratios are often used to determine
Q126: Why can't an economist say for certain
Q127: The assumption that precludes economic profits in
Q128: If a market is contestable, then<br>A)a cartel
Q129: If two firms that form a cartel
Q131: In long-run equilibrium, a monopolistic competitive firm
Q132: In long run equilibrium, a monopolistic competitive
Q133: The excess capacity theorem states that a
Q134: In the prisoner's dilemma, each prisoner would
Q135: Unlike a perfectly competitive firm, a monopolistic