Cartels:
A)Involve collusion.
B)Are seldom outlawed.
C) Are common across all industries.
D) Bypass the "prisoners' dilemma" for participants.

Question

Quizplus · Accepted Answer

Cartels involve collusion, which is the act of two or more parties working together to achieve a common goal. This behavior is often illegal as it can harm competition and consumer welfare. Therefore, most governments have laws in place to prevent or prosecute cartels. Choice B is incorrect because cartels are often outlawed. Choice C is incorrect because cartels are not common in all industries, but rather tend to exist only in concentrated markets with few competitors. Choice D is incorrect because the "prisoners' dilemma" is a game theory concept in which individuals are incentivized to act in their own self-interest, which is often at odds with the collective interest of a group. Cartels rely on members acting in the collective interest to maintain their power, so they do not bypass the "prisoners' dilemma."