Identify a Statement That Is True of a Cartel

Multiple Choice

Identify a statement that is true of a cartel.

A) In a cartel, all firms produce the same amount of output and earn the same profit.
B) In a cartel, all firms produce the same amount of output but earn different amounts of profit because their costs differ.
C) In a cartel, firms produce different amounts of output but earn the same profit.
D) In a cartel, firms with higher average costs produce more so that all firms earn the same profit.
E) In a cartel, firms with lower average costs often earn higher profits.