To increase their individual profits, members of a cartel have an incentive to

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By increasing production above the level agreed upon, each member can sell more goods and earn more profits. However, if all members do this, it could result in a collapse of the cartel and lower profits for all members. This is known as the prisoner's dilemma. Therefore, while it may be tempting for individuals to cheat, the best outcome for the group as a whole is to stick to the agreed upon production levels.

To Increase Their Individual Profits, Members of a Cartel Have