Once a cartel is formed, the market is in effect served by:
A)imperfect competition
B)a monopoly
C)monopolistic competition
D)an oligopoly

Question

Quizplus · Accepted Answer

Once a cartel is formed, the market is served by a monopoly. This is because the cartel members act together as a single entity and control the supply and prices of a particular product or service, similar to a monopoly. The cartel restricts competition among its members, leading to higher prices and reduced output, which is similar to the behavior of a monopolist.

Once a Cartel Is Formed, the Market Is in Effect