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Which of the Following Is True for a Typical Firm

Question 48

Multiple Choice

Which of the following is true for a typical firm in a typical cartel?


A) "I can never do better for myself than by following agreed-upon cartel policies."
B) "If everyone cheats, I'm better off, and so is everyone else in the cartel."
C) "If I alone cheat, I'm better off; if everyone cheats, I'm worse off."
D) "If I suspect others are planning to cheat, I'll do best for myself by refraining from cheating."

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