A member in a cartel can earn more profits by
A) charging a slightly lower price and raising production.
B) producing less than the agreed rate.
C) selling less than the agreed amount.
D) none of the above.

Question

Quizplus · Accepted Answer

By charging a slightly lower price and raising production, a member in a cartel can attract more customers from other cartel members, thus increasing their own profits at the expense of the others. This strategy undermines the cartel's agreement to keep prices high and production limited.

A Member in a Cartel Can Earn More Profits by