Individual members of a cartel have an incentive to ____ the cartel agreement because pursuit of ____ will maximize individual profit.

Question

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Individual members of a cartel have an incentive to cheat on the cartel agreement because pursuit of self-interest will maximize individual profit. By cheating on the agreement, a member can increase their own production and sales, which will increase their profits. This is in contrast to adhering to the agreement, which would require limiting production and potentially sacrificing individual profits for the benefit of the group.

Individual Members of a Cartel Have an Incentive to ____