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If a Television Factory Wanted to Conspire with Its Competitors

Question 74

Multiple Choice

If a television factory wanted to conspire with its competitors to raise the price of televisions, which of the following would help stabilize the long-term viability of such a cartel?


A) prevent co-conspirators from differentiating their product in trivial ways
B) create an advertising campaign that depicts watching TV shows on a computer as a negative experience
C) secure a government subsidy that goes to all TV manufacturers
D) cut everyone's marginal cost of production

Correct Answer:

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