When a Cartel Maximises Its Profit

question 121

Multiple Choice

When a cartel maximises its profit,

• A) total output is greater than it would be without collusion.
• B) the industry level of output is efficient.
• C) industry marginal revenue equals industry marginal cost at the level of total output.
• D) each firm necessarily produces the same amount.

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Definitions:

Wage Increase

An upward adjustment in the salary or hourly pay rate of workers, often in response to factors like cost of living adjustments, performance evaluations, or market conditions.

Auto Workers

Employees involved in the production of automobiles, typically working in manufacturing plants or assembly lines for automotive companies.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase.

Subsidy

A financial contribution granted by the government or a public body to support a business or economic sector.