MCQOPTIONS
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| 1. |
In which of the following circumstances would a cartel be most likely to work ? |
| A. | The market for copper, where there are very few producers and the product is standardized. |
| B. | The fast-food market where there are a large number of producers but the demand for fast food is inelastic |
| C. | The coffee market where the product is standardized and there are a large number of coffee growers. |
| D. | The automobile industry, where there are few producers but there is great product differentiation. |
| Answer» B. The fast-food market where there are a large number of producers but the demand for fast food is inelastic | |