Each firm in a cartel has an incentive to cheat on the agreement and produce less than the bargained amount.

Name: Each firm in a cartel has an incentive to cheat on the agreement and produce less than the bargained amount.
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Question

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Each firm in a cartel has an incentive to cheat on the agreement by producing more than the bargained amount, not less, in order to increase their individual profits at the expense of the collective agreement.

Each Firm in a Cartel Has an Incentive to Cheat