A cartel is
a. explicit collusion
b. a conglomerate merger
c. a horizontal merger
d. legal in the United States
e. implicit collusion
Question 2
The fire department receives its revenues from the government budget, not on a per-fire-extinguished basis. As a result, it is difficult for department officials to know if
a. the fire department is even needed
b. too much or too little fire protection is being supplied
c. fires should be extinguished
d. they should raise or lower price
e. keep the difference between revenues and costs
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