Assume a cartel that consists of two firms has determined its profit-m

Assume a cartel that consists of two firms has determined its profit-maximizing level of output and must now decide how to allocate total output between the two firms.

Assuming firm A’s marginal costs are less than firm B’s marginal costs, firm A should produce a smaller share of total output than firm B. Indicate whether the statement is true or false

ANSWER

FALSE