If a cartel is functioning at full effectiveness, then as a cartel's marginal cost of production increases, the cartel's profit maximizing price:

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When a cartel's marginal cost of production increases, the cartel, aiming to maximize profits, will raise the price of its product. This is because the cartel needs to cover the higher production costs and maintain its profit margins.

If a Cartel Is Functioning at Full Effectiveness, Then as a Cartel's