A cartel is a group of firms that formally agree to control the price and output of a product. Its primary goal is to replace competition with cooperation in order to reap monopoly profits. Cartels are generally illegal in the United States, but they are not necessarily illegal in other nations.

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A Cartel

Question 131

Multiple Choice

A cartel:

A) is a group of firms formally agreeing to control the price and the output of a product.
B) has as its primary goal to reap monopoly profits by replacing competition with cooperation.
C) is illegal in the United States, but not in other nations.
D) all of these.

Correct Answer: