In an Oligopoly in Which the Firms Have Entered into a Cartel

Multiple Choice

In an oligopoly in which the firms have entered into a cartel agreement,the Nash equilibrium exhibits which of the following?

A) firms jointly maximizing profits
B) the firms cheating on the cartel agreement, which benefits society
C) production at a price and output level close to monopolistic competition in the long run
D) the firms cheating on the cartel agreement, which harms society
E) one firm cheating on the cartel agreement and the other firms complying with the cartel agreement