The purpose of a cartel is to:
A) promote product innovation.
B) increase market competition.
C) act like a monopoly.
D) diversify operations.
E) decrease market concentration.

Question

Quizplus · Accepted Answer

The purpose of a cartel is to act like a monopoly by limiting production and fixing prices in order to maximize profits for its members. Cartels are usually created by businesses that operate in the same industry and want to reduce competition in their respective markets. Therefore, choices A, B, D, and E are not correct.

The Purpose of a Cartel Is To