Open and explicit agreements concerning pricing and output shares transform an oligopoly into a
A)Monopoly.
B)Cartel.
C)Differentiated oligopoly.
D)Perfectly competitive firm.

Question

Quizplus · Accepted Answer

Open and explicit agreements concerning pricing and output shares create a cartel, where firms cooperate to behave as a monopoly and maximize joint profits. Therefore, the correct choice is B.

Open and Explicit Agreements Concerning Pricing and Output Shares Transform