A successful cartel may end up charging the ____ price and obtaining ____ profits.
A)monopolistic competition; zero economic
B)oligopoly; monopoly
C)monopoly; zero economic
D)monopoly; monopoly

Question

Quizplus · Accepted Answer

A cartel that successfully controls the market can charge a monopoly price, which is the highest price that consumers are willing to pay. This results in the cartel members earning monopoly profits, which are also the highest possible profits in the market. Therefore, the best choice is D - monopoly price and monopoly profits.

A Successful Cartel May End Up Charging the ____ Price