A cartel
A)is a form of price leadership.
B)occurs through tacit collusion.
C)always involves price leadership.
D)is the most extreme form of explicit collusion.
E)is a synonym for explicit collusion.

Question

Quizplus · Accepted Answer

A cartel is the most extreme form of explicit collusion, where producers in the same market come together to coordinate production levels and prices in order to maximize profits. This is typically done through formal agreements and can involve both price leadership and tacit collusion.

A Cartel