The problem of the cartel points out that
A)the interests of consumers and duopolists are the same.
B)the interests of consumers and duopolists conflict.
C)the interests of consumers and duopolists are the same in pricing,but conflict in output management.
D)the interests of consumers and duopolists are the same in output management,but conflict in pricing.

Question

Quizplus · Accepted Answer

The problem of the cartel arises when the interests of consumers and duopolists conflict. A cartel is formed by competing firms in order to limit competition and increase their profits by acting as a monopoly. This results in higher prices for consumers, which is not in their best interest. Therefore, the interests of consumers and duopolists conflict in a cartel situation.

The Problem of the Cartel Points Out That