If a cartel is formed in order to maximize the total profits of its members,it will
A)charge the monopoly price,but produce more output than a monopoly would
B)produce the monopoly output,but charge a lower price than a monopoly would
C)charge the same price,and produce the same quantity that a monopoly would
D)charge a higher price and produce more output than a monopoly would
E)charge the monopoly price,but total output may be higher or lower than a monopoly's

Question

Quizplus · Accepted Answer

A cartel aims to maximize total profits by acting like a monopoly, setting the same price and producing the same quantity as a monopoly would to maximize joint profits.

If a Cartel Is Formed in Order to Maximize the Total