Paul's oil delivery company was struggling to make ends meet, so it conspired with the other oil delivery companies in the area to set prices, allocate market territories, and redistribute profits. By controlling the market in this way, the companies created a cartel.

Question

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By conspiring to set prices, allocate market territories, and redistribute profits, Paul's oil delivery company and the others engaged in behavior that defines a cartel, which is an agreement among competing firms to control prices or exclude entry of a new competitor in a market.

Paul's Oil Delivery Company Was Struggling to Make Ends Meet