A cartel is a group of oligopolistic firms that engage in formal collusion. They work together to control the market price and reduce competition. This is typically illegal in the United States and other countries because it is anti-competitive behavior.

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A Cartel Is

Question 143

Multiple Choice

A cartel is

A) a group of oligopolistic firms that engage in formal collusion
B) a group of monopolistically competitive firms which charge the same price
C) usually legal in the United States
D) an agreement among rival firms to set prices independently
E) illegal throughout the world

Correct Answer: