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Cartel Members Have an Incentive to Cheat on the Cartel

Question 89

Multiple Choice

Cartel members have an incentive to cheat on the cartel because:


A) the industry profit would be higher under competitive conditions.
B) the cartel price is the competitive price.
C) each member's output quota is too high.
D) each member's MR is not equal to the cartel's MC.

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