Within a cartel, cheating is often a(n) ______ strategy.
A) dominated
B) dominant
C) unused
D) unavailable

Question

Quizplus · Accepted Answer

Within a cartel, cheating is often a dominant strategy. This is because if one member of the cartel cheats and increases its production, it can earn higher profits while still benefiting from the price-fixing agreement made by other members. However, if everyone cheats, it can lead to a collapse of the cartel and lower profits for all members.

Within a Cartel, Cheating Is Often A(n) ______ Strategy