Each firm in a cartel has an incentive to chisel because market ...

[nummyann]

Each firm in a cartel has an incentive to chisel because market price exceeds
 a. marginal cost.
  b. average cost.
  c. average variable cost.
  d. average fixed cost.

Question 2

All of the following are problems associated with maintaining a cartel except
 a. cartels are illegal.
  b. a large amount of information is needed to coordinate a cartel.
  c. profits are not maximized by a cartel so it will evolve into a monopoly.
  d. each member of the cartel has an incentive to chisel by expanding output.

[sabina576]

Answer to Question 1

a

Answer to Question 2

c

[nummyann]

Thanks for the timely response, appreciate it

[chjcharjto14]

Excellent