1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jeyben [28]
3 years ago
11

Cartel agreements are difficult to maintain because individual members True or False

Business
1 answer:
Anuta_ua [19.1K]3 years ago
8 0

Answer:

True

Explanation:

Cartel

It is important to define a cartel before explaining the question. A Cartel represents a group of firms that come together for making price and output decisions about their products.

Monopoly is one of the main reasons for the rise of Cartels. Cartel members are organisations in markets where there are very few firms and each firm has a significant share of the markets. An example of this is the Organisation of Petroleum Exporting Countries (OPEC).

The Petroleum market is monopolistic in the sense that a few countries are responsible for the crude oil and related products that are used by all countries around the world, hence, OPEC was formed to regulate the actions; production level and price of the Oil produced and processed for regulatory purposes.

Why it is difficult to maintain Cartel Agreements

It is difficult to maintain cartel agreements because individual members will always attempt to cheat and by-pass the agreement to produce beyond the agreed quota just to increase their share of the cartel's profits.

Individual members can always produce above their quota to take advantage of the large market and monopolistic situation to make more monopoly profit.

This difficulty is one of the reasons why there are few Cartels available and it is also why the OPEC has had difficulties monitoring the activities of its members over the years.

You might be interested in
I need frends anyone want to be my frend :[
Andrei [34K]

Answer:

Sure!!

This pandemic sucks

6 0
3 years ago
Donovan Company incurred the following costs while producing 500 units: direct materials $10 per unit, direct labour $25 per uni
Dafna1 [17]

Answer:

Option (D) is correct.

Explanation:

Unit product cost:

= Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead

= $10 + $25 + $15 + $20

= $70

Operating income using absorption costing:

= (500 units × $100) - (500 units × $70) - (500 units × $5) - $7,500

= $50,000 - $35,000 - $2,500 - $7,500

= $5,000

8 0
3 years ago
Cash markets are also known as Group of answer choices speculative markets spot markets dollar markets derivative markets
alukav5142 [94]

Answer:

<em>Cash markets are also known as</em><em> </em><em><u>spot</u></em><em><u> </u></em><em><u>markets</u></em>

________________________________

<em>Spot </em><em>markets</em><em> </em><em>are</em><em>:</em><em> </em><em>markets </em><em>designed </em><em>to</em><em> </em><em>attract</em><em> </em><em>speculator.</em>

8 0
2 years ago
A customer holds 100 shares of ABC Corp $100 par convertible preferred stock convertible at a 10 to 1 ratio. If ABC declares and
Leviafan [203]

Answer:

B. 100 shares of ABC preferred stock

Explanation:

Shares are ownership stakes of a company that are given out to individuals who contribute to capital base of a company.

Preference shares are those whose owners recieve preference in payment of dividends, a fixed dividend is paid to them.

Ordinary shares recieve less preference when dividend is paid, usually coming last in divedend payment.

In this scenario ABC has decided to pay 10% stock dividend. This will be paid to ordinary share holders.

So the person with 100 preference shares will have 100 preference shares

10% of par value of $100 is 0.1 * 100= $10

Number of shares are 100 so the value is now 100 * $10 = $1,000

Since the conversion rate of preference to ordinary shares is 10:1

Number of preference shares= 1,000 ÷ 10= 100 preference shares

5 0
3 years ago
Your credibility is your capability of being believed because you are reliable and worthy of confidence.
QveST [7]

yes, agreed and proven.

7 0
2 years ago
Other questions:
  • Jake owns Delta Dew, a small local California marijuana producer and dispensary. Jake complies with all applicable state laws an
    11·1 answer
  • Transformational leaders use four key kinds of behaviors that affect followers. paul vallas exhibits _________ as he explains hi
    11·1 answer
  • The management of a telecommunications company informs the members of its sales team that if they continue to underperform, the
    12·1 answer
  • Why do managers consider direct costs to be more accurate than indirect​ costs?
    9·1 answer
  • Are there different laws for individuals and businesses?
    10·1 answer
  • In a market economy the factors of production are allocated by
    11·1 answer
  • Carol was recently fired from her job as a purchaser for a grocery store. she was told the reason for her dismissal was the almo
    9·2 answers
  • Your company's board of directors expects you and your co-managers to achieve improved company performance outcomes that include
    9·1 answer
  • All are signs of neglect and emotional abuse EXCEPT:
    5·2 answers
  • Assume that the weekly payroll of in the woods is . December​ 31, end of the​ year, falls on​ Tuesday, and will pay its employee
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!