Multiple Choice
What is the incentive for a firm to join a cartel?
A) To be able to earn profits in the long run but not in the short run.
B) To be able to earn larger profits than if it was not part of the cartel.
C) To completely insulate itself from competition.
D) To produce a larger amount of output than if it was not part of the cartel.
Correct Answer:
Verified
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