Question

In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?
A) When the amount of revenue generated by each member of the cartel is the same.

B) When there are no economies of scale in production.

C) When each member of the cartel is using the same scale of production.

D) When marginal costs of production are the same for each of the members of the cartel.

Answer 1

Answer:

In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?

When marginal costs of production are the same for each of the members of the cartel.

Explanation:

D