Which of the following reflects the incentive structure confronted by a typical firm in a cartel?
A) If I alone cheat, I'm better off; if everyone cheats, I'm worse off.
B) I can never do better for myself than by following agreed-upon cartel policies.
C) If everyone cheats, I'm better off and so is everyone else in the cartel.
D) If I suspect others are planning to cheat, I'll do best for myself by deciding not to cheat.
Correct Answer:
Verified
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