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If a Cartel Firm Is Producing a Quantity at Which

Question 3

Multiple Choice

If a cartel firm is producing a quantity at which the marginal revenue is equal to the marginal cost, the firm ________.


A) is producing less than the agreed upon quantity
B) is not producing the agreed upon quantity
C) has erected a barrier to entry
D) has not acted in self- interest

Correct Answer:

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