To be successful, a cartel must
A)find a way to encourage members to produce more than they would otherwise produce.
B)agree on the total level of production for the cartel, but they need not agree on the amount produced by each member.
C)agree on the total level of production and on the amount produced by each member.
D)agree on the prices charged by each member, but they need not agree on amounts produced.

Question

Quizplus · Accepted Answer

In order for a cartel to be successful, its members must agree both on the total level of production and on the amount produced by each member. This is because if one member produces more than agreed upon, it can undercut the prices of other members and destabilize the market. Therefore, all members need to produce at the agreed-upon level in order to maintain market stability and benefit from higher prices.

To Be Successful, a Cartel Must