If a cartel firm is producing a quantity at which the marginal revenue is $2 and the marginal cost is $2, the firm________ .

Question

Quizplus · Accepted Answer

In economic theory, when a firm is producing at a quantity where marginal revenue (MR) equals marginal cost (MC), it is maximizing its profit. This decision aligns with the firm acting in its own self-interest to achieve the highest possible profit, regardless of any agreements within a cartel.

If a Cartel Firm Is Producing a Quantity at Which