Economists would describe cartels as
A)the opposite of ignoring interdependence.
B)a collusive arrangement.
C)an undesirable form of market organization that may charge a monopoly price.
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

Cartels involve a collusive arrangement among firms in a market to artificially manipulate prices and output levels. This is the opposite of ignoring interdependence, as firms are coordinating their behavior to achieve a common goal. Cartels are generally considered an undesirable form of market organization as they can result in higher prices for consumers due to the monopoly power held by the cartel. Therefore, all of the given responses are correct.

Economists Would Describe Cartels as