Boeing and Airbus Have Entered into a Cartel Agreement That

Multiple Choice

Boeing and Airbus have entered into a cartel agreement that will enable them to boost their profits. What occurs if Boeing decides to cheat on the agreement? i. Boeing lowers the price of its airplanes.
Ii) The total industry output increases.
Iii) The total profits in the airplane industry will decrease.

A) i only
B) ii only
C) iii only
D) i and ii
E) i, ii and iii