For a cartel,joint profit is maximized where marginal revenue equals marginal costs.

Question

Quizplus · Accepted Answer

This is true as for any profit-maximizing firm or cartel, the ideal output level would be where marginal revenue (MR) is equal to marginal cost (MC). At this point, additional production would not generate any additional revenue, while costs would keep increasing, thereby reducing profits. Therefore, joint profit is maximized at the point where MR=MC.

For a Cartel,joint Profit Is Maximized Where Marginal Revenue Equals