In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?

Question

Quizplus · Accepted Answer

When marginal costs of production are the same for each member, producing an equal share of the total output sold by the cartel will result in each member contributing equally to joint profit maximization. This is because each member will have the same cost structure, and producing an equal share will minimize the overall cost of production for the cartel as a whole. In the other situations, there may be variation in cost structures or economies of scale that make an equal share of output less optimal for joint profit maximization.

In Which of the Following Situations Would Each of the Members