Which of the Following Explains How a Cartel with 100

Multiple Choice

Which of the following explains how a cartel with 100 percent control might raise price to monopoly-like levels?

A) By setting a group output level equal to a profit-maximizing monopolist, and then assigning binding quota shares to cartel members.
B) By setting an official price that members can secretly undercut.
C) By forbidding price competition, but allowing non-cooperative rivalry in output levels.
D) None of the above.