A cartel most likely occurs in which type of industry?
A)Monopoly
B)Monopolistic competition
C)Perfect competition
D)Oligopoly
E)A regulated industry

Question

Quizplus · Accepted Answer

Cartels are most likely to occur in oligopolistic industries, where a small number of large firms dominate the market. This allows for coordination between the firms to set prices and limit competition, which can lead to higher profits for all firms involved. In industries with perfect competition, monopolistic competition, or regulated industries, there is typically too much competition for a cartel to form or it is prohibited by regulatory bodies. Monopolies may not need to form cartels as they already have complete control over the market.

A Cartel Most Likely Occurs in Which Type of Industry