The basic objective of a cartel is to:
A) maximize profit for the largest, most influential members.
B) increase the total consumer surplus in the market.
C) produce the highest output level possible.
D) secure monopoly profits for its members.
E) successfully practice price discrimination in the market.

Question

Quizplus · Accepted Answer

The basic objective of a cartel is to secure monopoly profits for its members, which involves limiting competition, controlling prices, and often reducing output. Maximizing profit for the largest, most influential members may be a means to achieving this objective, but it is not the primary goal. Increasing total consumer surplus or practicing price discrimination are not objectives of a cartel, as they would undermine the cartel's ability to maximize profits for its members.

The Basic Objective of a Cartel Is To