Which of Following Is Not a Condition That Must Be

question 60

Multiple Choice

Which of following is not a condition that must be met for a cartel to maximize its joint profits?

• A)Total output by the cartel must be allocated among the member firms such that the individual firm's marginal costs are equal.
• B)The cartel must produce the level of output at which its marginal revenues and marginal costs are equal.
• C)The cartel must be operating in the inelastic portion of its demand curve.
• D)Each member firm must employ the least-cost method of production.