When a Cartel Member Produces More Than the Agreed-Upon Quota

Multiple Choice

When a cartel member produces more than the agreed-upon quota, the net gain for that firm is calculated as the revenue earned from

A) a higher market price plus the revenue earned from producing more output.
B) a higher market price minus the revenue lost from producing more output.
C) producing more output minus the revenue lost from a lower market price.
D) producing more output divided by the revenue lost from a lower market price.