Figure 11-16

-Figure 11-16 illustrates the market for bananas.If the market consisted of two competitors and they formed a cartel,the market price and quantity would be

Question

Figure 11-16
 
-Figure 11-16 illustrates the market for bananas.If the market consisted of two competitors and they formed a cartel,the market price and quantity would be

Quizplus · Accepted Answer

In a cartel, firms collude to act like a monopoly, setting a higher price and reducing output to maximize joint profits. Thus, the price would be higher ($.75) and the quantity lower (100 lbs).

Figure 11-16 -Figure 11-16 Illustrates the Market for Bananas.If the Market Consisted