Use the following statements to answer this question: I. Cartels are illegal in the United States.
II) Once price and production levels are agreed upon, each member of a cartel has an incentive to "cheat" on the agreement.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.

Question

Quizplus · Accepted Answer

Cartels are indeed illegal in the United States according to antitrust laws. Additionally, the incentive to cheat on the agreed-upon price and production levels exists because each member has an incentive to increase their own profits by producing and selling more than their agreed-upon quota.

Use the Following Statements to Answer This Question: I