If a cartel is successful, it will behave as a monopolist and maximize profit at the point at which MR = MC.

Name: If a cartel is successful, it will behave as a monopolist and maximize profit at the point at which MR = MC.
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Question

Quizplus · Accepted Answer

Yes, this is true. Cartels try to act like a monopoly by controlling the market and setting prices. Therefore, they will try to maximize their profits by producing at the point where marginal revenue (MR) equals marginal cost (MC), just as a monopolist would.

If a Cartel Is Successful, It Will Behave as a Monopolist