A cartel: A) has one firm that acts as the price leader

Option C is True: acts like a monopoly.

A cartel:

A) has one firm that acts as the price leader.

This is not true because firms in cartel co-operate and act like multiplant monopoly. The price are raised higher all together and there is no price leader.

B) involves competition between rival firms.

This is not true because cartel is a group of firms which collude with each other to dominate market and limit competition among member firms.

C) acts like a monopoly.

This is True because cartel acts as a monopoly and produces a level of output, for which marginal revenue equals marginal cost in each firm.

D) prices its output equal to marginal cost.

This is False. A cartel produces at a profit - maximizing quantity level where marginal revenue equals marginal cost in each firm. Thus, the market

price is found on the demand curve and higher than marginal cost.

E) is a group of firms engaged in price discrimination.

This is not true because cartel works by raising price or restricting output to all consumers.