When oligopolists join together in a cartel, they
A)have chosen to ignore interdependence.
B)have admitted that their behavior is interdependent.
C)are planning to violate the law of supply and demand.
D)are trying to behave like perfect competitors.

Question

Quizplus · Accepted Answer

When oligopolists join together in a cartel, they are admitting that their behavior is interdependent, as they are agreeing to coordinate their production and pricing strategies. A cartel aims to maximize joint profits by restricting output and driving up prices. Cartels are typically illegal and violate antitrust laws.

When Oligopolists Join Together in a Cartel, They