A cartel is an organization of firms
A)dominated by one firm, which is usually referred to as the price leader.
B)that attempts to increase total (or industry) demand for their product.
C)that reduces output and increases price in an effort to increase joint profits.
D)that deliberately attempts to disrupt the market for political reasons.

Question

Quizplus · Accepted Answer

Cartels are organizations of firms that agree to act together, often to control production and prices in order to maximize joint profits, rather than competing against each other. This typically involves reducing output to increase prices.

A Cartel Is an Organization of Firms