If a cartel discovers that its marginal cost is greater than marginal revenue,the cartel should

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If the cartel discovers that its marginal cost is greater than marginal revenue, it means that the cost of producing an additional unit of output is higher than the revenue gained from selling that unit. This implies that the cartel is producing too much and should reduce its production to reach the profit-maximizing level, where marginal cost equals marginal revenue. Therefore, the best choice for the cartel is to reduce production.

If a Cartel Discovers That Its Marginal Cost Is Greater