For a cartel,the

Name: For a cartel,the
Brand: Quizplus
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Question

For a cartel,the

Quizplus · Accepted Answer

For a cartel, the demand for the product remains the same as it is a joint agreement among the firms. However, the cartel firms reduce the output to increase the price of the product. This leads to a decrease in the total revenue earned by the cartel firms. As a result, the marginal revenue for the cartel lies below the demand curve. Thus, the correct answer is C) - the marginal revenue curve lies below the demand curve.

For a Cartel,the