In a typical cartel agreement,the cartel maximizes profit when it:

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In a typical cartel agreement, the cartel acts like a monopolist by restricting output and raising prices in order to maximize profits. This is done by establishing production targets and enforcing them strictly among its members. Behaving as a duopolist or a perfectly competitive firm would not allow the cartel to achieve monopoly profits, while being flexible in enforcing production targets would lead to output levels that are too high, reducing prices and profits for the cartel.

In a Typical Cartel Agreement,the Cartel Maximizes Profit When It