Collusive Agreements Are Typically Difficult for Cartels to Maintain Because

Multiple Choice

Collusive agreements are typically difficult for cartels to maintain because each firm can increase profits by:

A) producing more than the quantity that maximizes joint profits.
B) producing less than the quantity that maximizes joint profits.
C) charging more than the price that maximizes joint cartel profits.
D) advertising less than will maximize joint cartel profits.