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 group of firms with an explicit,formal agreement to fix prices and output shares in a particular market.

Question

Quizplus · Accepted Answer

A cartel is a group of firms that come together to coordinate their production and pricing decisions in a particular market. The aim of a cartel is to increase profits for its members by reducing competition and artificially inflating prices. Cartels are generally illegal in the United States and other countries, as they violate antitrust laws.

A Cartel Is