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    International Economics Study Set 12
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    Exam 7: Trade Policies for the Developing Nations
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    When Cartel Members Agree to Restrict Output to Increase the Price
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When Cartel Members Agree to Restrict Output to Increase the Price

Question 139

Question 139

True/False

When cartel members agree to restrict output to increase the price of their product, a single member of the cartel has an economic incentive to violate the agreement by increasing its output in order to increase profits.

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