If a Cartel Is Formed in Order to Maximize the Total

question 179

Multiple Choice

If a cartel is formed in order to maximize the total profits of its members,it will

• A)charge the monopoly price,but produce more output than a monopoly would
• B)produce the monopoly output,but charge a lower price than a monopoly would
• C)charge the same price,and produce the same quantity that a monopoly would
• D)charge a higher price and produce more output than a monopoly would
• E)charge the monopoly price,but total output may be higher or lower than a monopoly's

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Definitions:

Freight Costs

Freight Costs entail the charges incurred for the transportation of goods by land, sea, or air.

Perpetual System

A system for managing inventory that instantly logs sales or purchases via computerized point-of-sale systems and enterprise asset management software.

Inventory

A company's complete stock of items and materials, kept for the aim of either resale or use in manufacturing processes.

Sales Discount

A reduction in the price of a product or service offered by a seller to the purchaser, usually provided for prompt payment or in specific situations.