Which of the following quotes shows cheating on a cartel in the widget industry?
A)"I am producing extra widgets,even though it costs me short-run profit,to stop Wally's Widgets from expanding into my market."
B)"I am producing more widgets than Wally and I agreed to in our talk last week."
C)"If only Wally and I could agree on a higher price,we could make more profit."
D)"I have been spending extra on research and development of my new two-way widget."
E)"Wally's Widgets should charge a higher price."

Question

Quizplus · Accepted Answer

Option B shows cheating on a cartel in the widget industry because the speaker is producing more widgets than they agreed to produce in the meeting with Wally. This goes against the agreement made within the cartel to keep production levels and prices stable.

Which of the Following Quotes Shows Cheating on a Cartel