Use the following to answer questions:
Figure: Competitive Market
-(Figure: Competitive Market) Refer to the figure. If all firms in the market form a successful cartel, price and output in the market would be:

Question

Use the following to answer questions:
Figure: Competitive Market 
-(Figure: Competitive Market) Refer to the figure. If all firms in the market form a successful cartel, price and output in the market would be:

Quizplus · Accepted Answer

If all firms in the market form a successful cartel, they will collectively act as a monopoly, with a single profit-maximizing output level and price. This will result in an output level of Q₁ and a price of P₂, which is the same as the monopoly outcome.

Use the Following to Answer Questions