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When a Cartel Member Produces More Output and Lowers Prices

Question 88

Multiple Choice

When a cartel member produces more output and lowers prices,:


A) the entire cartel is made more profitable.
B) it receives all the benefits of the increased sales and the other members bear the burden of lower profits.
C) it enjoys only a fraction of the benefits of selling more units.
D) it bears the entire cost of lower prices.

Correct Answer:

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