In a typical cartel agreement,when does the cartel maximize profit
A)when it behaves as a monopolist
B)when it behaves as a duopolist
C)when it behaves as a monopolistically competitive firm
D)when it behaves as a perfectly competitive firm

Question

Quizplus · Accepted Answer

In a typical cartel agreement, firms collude to behave as a monopolist, with the goal of maximizing joint profits by restricting output and raising prices. This behavior allows the cartel to achieve higher profits than each individual firm could earn in a competitive market.

In a Typical Cartel Agreement,when Does the Cartel Maximize Profit