A cartel is
A) A type of market structure.
B) Not illegal in the United States.
C) An organization intended to increase competition in an industry.
D) A public agreement between firms or countries to restrict production and raise prices.

Question

Quizplus · Accepted Answer

A cartel is a group of firms or countries that make a public agreement to restrict production and raise prices in order to increase profits. Cartels are illegal under U.S antitrust laws because they distort competition and harm consumer welfare. Therefore, option A and C are incorrect while option B is misleading.

A Cartel Is