What Happens to the Profit-Maximizing Cartel Price and Quantity If

Multiple Choice

What happens to the profit-maximizing cartel price and quantity if the marginal cost of production declines?

A) The sellers are no longer price takers, so the change in marginal cost has no impact on the cartel outcome.
B) If demand is downward sloping, the optimal cartel price should decline and the market quantity should increase.
C) The sellers retain the same pricing strategy and capture higher per-unit profits.
D) The cartel price increases and market quantity declines.