Answer: An individual cartel member has an economic incentive to sell more than its quota, thus cheating on the cartel agreement. However, if all cartel members sell more than their quotas, the cartel price will fall, and profits will vanish
Explanation: A cartel is defined as group of businesses or nations that collude to limit competition within an industry or market. Thus, a major purpose of a cartel is to drive up price and profits thus restricting market output. This restriction however, requires cartel members to sell no more than their given quotas which provides individual cartel member with economic incentives to sell more than its quota resulting in cheating and a breach of cartel agreement. This leads to a fall in cartel price and vanishing profits should all members sell above their quotas which is a direct contradiction to the purpose of cartels.
Answer:
C
Explanation:
When owning a business a corporation there are many rules and laws to be followed you have to go through many things for the government and keep up your end of the deal that you've made with owning your own company.
Answer:
B. forcing producers to factor into their production costs , the cost of the externalities created in the production of their output
Explanation:
" internalizing an external cost " -
It is the process of shifting the cost or the burden from negative externality like the pollution , to inside .
And this process is achieved via paying taxes , the government subsidies , tolls etc .
Hence , the correct explanation for " internalizing an external cost " is ( b ) .
