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Which of the following constitutes a credible threat in a cartel to be implemented if one of the cartel members deviates from the collusive outcome?

Which of the following constitutes a credible threat in a cartel to be implemented if one of the cartel members deviates from the collusive outcome?

Group of answer choices

a. each firm chooses a best response to the previously observed market output

b. none of the other choices is correct

c. each firm produces at the Nash equilibrium level

d. each firm produces at full capacity

e. each firm produces at the perfectly competitive level

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