A cartel's profit-maximizing price is
A)on the demand curve at the quantity where marginal cost equals marginal revenue
B)on the demand curve where it intersects its marginal cost curve
C)the highest price possible
D)determined by using the cost-plus pricing model
E)where the kink in the demand curve occurs

Question

Quizplus · Accepted Answer

A cartel maximizes profit by producing the quantity where marginal cost equals marginal revenue, and the corresponding price is found on the demand curve.

A Cartel's Profit-Maximizing Price Is