Which of the following is LEAST likely to be an outcome of a cartel as compared to the situation before the cartel was formed?
A) Cartel members charge higher prices.
B) Cartel members reduce production.
C) Cartel members make fewer profits.
D) Cartel members do not compete with each other in pricing decisions.

Question

Quizplus · Accepted Answer

The purpose of a cartel is to limit competition and increase prices, which typically results in higher profits for its members. Therefore, it is unlikely that cartel members would make fewer profits than they did before the formation of the cartel.

Which of the Following Is LEAST Likely to Be an Outcome