When rival firms agree to control output and raise prices, there is:

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A cartel is an agreement between competing firms to control output and raise prices, often through explicit or implicit collusion. This allows the firms to increase profits by avoiding price competition and maintaining artificially high prices. Horizontal mergers involve the combination of two or more firms in the same industry, while vertical mergers involve the combination of firms in different stages of production. Tying arrangements involve the sale of one product on the condition that the buyer also purchases another product. Interlocking directorates occur when a person serves on the board of directors for two or more competing firms.

When Rival Firms Agree to Control Output and Raise Prices