A cartel
A) consists of two firms that collude to eliminate product differentiation so that they can sell their goods as identical goods
B) is a group of firms that collude to limit competition within their market
C) refers to the breakup of a firm into two or more firms where each produces a good that does not compete against the others
D) is a government-supported merger of two or more firms to improve the nation's advantage in international trade
E) is an illegal merger of two firms that produce unrelated goods

Question

Quizplus · Accepted Answer

A cartel is essentially a group of firms that collude to limit competition within their market, often by setting prices, limiting production, or dividing markets among themselves to maximize their collective profits.

A Cartel