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Subject - Economics:

Microeconomics

MCQ - 44-4054

Question:

If a market is organized by a cartel, we can expect

  1. normal profits for all cartel firms.
  2. an incentive for cartel firms to cheat on the cartel agreement.
  3. profit maximization by individual firms in the cartel.
  4. an incentive for cartel firms to cheat on the cartel agreement.
  5. perfectly competitive prices.

Correct Answer: B

Explanation:

Cartels are illegal collusive agreements to lower output, raise the price, and maximize joint profits. Each member has an incentive to cheat by producing a little more.

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: If a market is organized by a cartel, we can expect , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 44-4054.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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