A major reason that firms form a cartel is to

A) reduce the elasticity of demand for the product.
B) enlarge the market share for each producer.
C) minimize the costs of production.
D) maximize joint profits.

Cartel

An association of manufacturers or suppliers that maintains prices at a high level by restricting competition and output.

Elasticity of Demand

A measure of how responsive the quantity demanded of a good or service is to a change in its price, indicating how changes in price influence consumer purchasing behavior.

Maximize Joint Profits

involves strategies or actions taken by two or more entities working together to achieve the highest combined financial gains.