Which of the following is LEAST likely to be a reason for firms to form a cartel?
A) to maximize profits of the cartel
B) to raise competition among firms in the cartel
C) to cut back output of the cartel
D) to set common prices among firms in the cartel

Question

Quizplus · Accepted Answer

Cartels are formed by firms to collude and reduce competition, so it is unlikely that firms would form a cartel to raise competition among themselves. The other options are all possible reasons for firms to form a cartel.

Which of the Following Is LEAST Likely to Be a Reason