ZuoTi.Pro
Question

When is a cartel least likely to be successful? when there is significant competition from non...

When is a cartel least likely to be successful?

when there is significant competition from non members

when there are not any strong antitrust laws

when the expected gains from forming a cartel exceed the potential punishment

when the cost of establishing and enforcing the cartel agreement are relatively low compared to the gains.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

A cartel is an agreement between the companies to increase their profits. They achieve more profits either by fixing the prices, market sharing, bid-rigging etc. Companies involve in such illegal agreements in order to maximize their profits.

Among the following options, a cartel is least likely to be successful when there is significant competition from non-members of the cartel.

This is because, the cartel members has to usually accept lower sales or production to gain benefit as per the agreement. However, when a non-member is also gaining the same profit as that of the cartel member, then, as there is no implication on the productivity and sales of the non-member he sells more products and hence reap huge profits than the cartel member.

0 0
Add a comment
Know the answer?
Add Answer to:
When is a cartel least likely to be successful? when there is significant competition from non...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 13. What is a feature common to both Monopolistic-Competition and Oligopoly type of markets? a. productive...

    13. What is a feature common to both Monopolistic-Competition and Oligopoly type of markets? a. productive efficiency will occur in both the short run and long run, a desirable economic property of markets. b. many smaller sized firms can produce the good or service at lower cost per unit than larger sized firms, thus large firms fail in the long run. c. the demand curve for each firm is not going to be purely elastic, because products are at least...

  • 13. What is a feature common to both Monopolistic-Competition and Oligopoly type of markets? a. productive...

    13. What is a feature common to both Monopolistic-Competition and Oligopoly type of markets? a. productive efficiency will occur in both the short run and long run, a desirable economic property of markets. b. many smaller sized firms can produce the good or service at lower cost per unit than larger sized firms, thus large firms fail in the long run. c. the demand curve for each firm is not going to be purely elastic, because products are at least...

  • Economic quizs, please help check my answers. UNIVERSITY JON Question 1 Ia member of a cartel...

    Economic quizs, please help check my answers. UNIVERSITY JON Question 1 Ia member of a cartel is the first to alert authorities to the cartel behavior, which of the following w occur to this member firm? Not yet answered Points out of 1.00 P er question 3 10 11 12 Select one: • A. The firm will not be penalized. B. The firm's most senior managers will face jail time. 5 16 17 18 C. The firm will face significant...

  • 2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely...

    2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financial asset. B. more likely to save, that is, sell a financial asset. C. less likely to save, that is, purchase a financial asset. D. more likely to save, that is, purchase a financial asset. I. In 2. If commercial banks hold all their assets in the form of required reserves: A. only they will be able to...

  • Question: Is social media out of control? While SMIS are presented as a benefit to businesses...

    Question: Is social media out of control? While SMIS are presented as a benefit to businesses and consumers, they also have a dark side. Read the attached article titled “The Case for Investigating Facebook” by David N. Cicilline, a member of the House of Representatives and chairman of the House Subcommittee on Antitrust, Commercial and Administrative Law, and discuss. Article: A year ago, the world learned that Facebook allowed a political consulting company called Cambridge Analytica to exploit the personal...

  • Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee

    1. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Management's failure to renegotiate unfavorable long-term purchase commitments.B. Recurring operating losses that may indicate going concern problems.C. Evidence of a lack of objectivity by those responsible for accounting decisions.D. Management's current plans to reduce its ownership equity in the entity. 2. After obtaining an understanding of internal control and arriving at a preliminary assessed level...

  • i need help to understand those two question from discussion in this artical please. 3. Take...

    i need help to understand those two question from discussion in this artical please. 3. Take a few minutes to re-read the first four paragraphs of the Discussion section. Explain in your own words the "metabolic suppression hypothesis" proposed by the researchers: what is the hypothesis, and why might it be plausible? WRITE YOUR RESPONSE HERE PLEASE (don't forget the in-text citation, as well as quotation marks and a page number if you are quoting in your answer) This study...

  • 1. In what ways was Microsoft’s behaviour (a) against the public interest; (b) in the public...

    1. In what ways was Microsoft’s behaviour (a) against the public interest; (b) in the public interest? 2. Being locked in to a product or technology is only a problem if such a product can be clearly shown to be inferior to an alternative. What difficulties might there be in establishing such a case? etwork effects Microsoft is a vertically integrated firm (see page 87), with a dominant position in the operating system market (i.e. Windows) and in certain application...

  • Lauren’s balancing Act DeMarco’s Department Store manager Lauren Brewster’s “Wow” moment came when she observed a...

    Lauren’s balancing Act DeMarco’s Department Store manager Lauren Brewster’s “Wow” moment came when she observed a Chicago restaurant staff ’s gushing treatment of an international celebrity. “Everyone dreams of that kind of star treatment,” Lauren told her assistant, Jack Klein. “Think about it. People brag about their bank or the local bar where ‘everybody knows your name,’ or enjoy showing off a favorite restaurant where the hostess always remembers their favorite table.” DeMarco’s, like other upscale department stores, suffered the...

  • Could someone take notes for me with explantation with these paragraph. Thank you inadvance. cluding oligopolyf...

    Could someone take notes for me with explantation with these paragraph. Thank you inadvance. cluding oligopolyf of their effects 's long-run aveta uction are a wel E.com Econoward or her the plaustries beca Economien. RAC) slopes operation at eitherent industries be dries because only larges ceed with a larger se barrier to entry in benefits of these ecc es. Industries number of larys ests of production Microeconomic Analysis These factors apply to all imperfectly competitive firms, includin Well now describe...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT