If the Firms of an Industry Form a Cartel, Their

Multiple Choice

If the firms of an industry form a cartel, their goal is to

A) collectively increase output and thereby earn higher profits.
B) cut back on output and raise the price of their product to earn higher profits.
C) maintain a constant level of output, but increase price to earn higher profits.
D) maintain a constant price level, but increase output to earn higher profits.