Using the market marginal revenue, firms in a cartel or engaged in tacit collusion should set ________equal to _________ to maximize profit.

Question

Quizplus · Accepted Answer

Firms in a cartel or engaged in tacit collusion aim to maximize profits by setting marginal revenue equal to marginal cost. This principle ensures that the additional revenue from selling one more unit equals the additional cost of producing that unit, optimizing profit.

Using the Market Marginal Revenue, Firms in a Cartel or Engaged