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If Most Cartel Members Keep Their Agreement to Cut Back

Question 3

Multiple Choice

If most cartel members keep their agreement to cut back production:


A) it's not profitable in the short run for another member to increase production.
B) it's profitable in the short run for another member to increase production.
C) cheating by another member won't be detected.
D) the losses associated with cheating are internalized by the cheater.

Correct Answer:

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