The Table Below Shows the Payoff (Profit) Matrix of Firm

Multiple Choice

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms) .Table 12.2

-When firms in an illegal market form a cartel, _____.

A) they are able to supply higher quality products
B) it becomes more difficult for police to detect their activities
C) they are able to increase profits by behaving as a monopolist
D) they face a deadweight loss
E) they rely on goodwill to ensure the stability of the cartel