In order to increase the price of the product to improve profits and then increase advertising expenditures. Question 5 options: there is a significant lack of government regulation of cartels, especially those in worldwide production. each firm can increase its output and thus its profits by cutting price. the marginal revenue for an individual firm is greater than marginal cost at the profit-maximizing price set by the cartel. the costs of production are the same for each firm, but the product demand differs