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A Cartel Is a Collusive Agreement Among a Number of Firms

Question 4

Multiple Choice

A cartel is a collusive agreement among a number of firms that is designed to


A) expand output and lower prices but not to a predatory level.
B) restrict output and lower prices to a predatory level.
C) restrict output and raise prices.
D) expand output and raise prices.
E) expand output and lower prices to a predatory level.

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