A profit-maximizing cartel will make pricing and output decisions as if it is:
A) perfectly competitive.
B) monopolistically competitive.
C) an oligopoly.
D) a monopoly.

Question

Quizplus · Accepted Answer

A profit-maximizing cartel behaves like a monopoly by reducing output and increasing prices to maximize overall profits, unlike competitive markets where firms are price takers.

A Profit-Maximizing Cartel Will Make Pricing and Output Decisions as If