For a cartel behaving like a pure monopoly, equating marginal revenue to marginal cost maximizes profit over and above the perfectly competitive profit.

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When a cartel behaves like a pure monopoly, it is able to restrict output and charge a higher price, leading to a higher profit than under perfect competition. Maximizing profit in this case involves producing at a quantity where marginal revenue is equal to marginal cost.

For a Cartel Behaving Like a Pure Monopoly, Equating Marginal