A cartel is an arrangement
A) by the government to restrict imports.
B) to steal industrial processes from rival firms.
C) to flood the market and eliminate competition.
D) among firms to decrease output and raise price.

Question

Quizplus · Accepted Answer

Cartels are agreements among competing firms to control prices or limit production in order to increase profits by reducing competition. This often involves firms agreeing to set prices at a certain level or to limit the amount of goods they produce, thereby artificially inflating prices.

A Cartel Is an Arrangement