If a local government began licensing funeral homes in the area, effectively making them into a cartel, we would expect

Question

Quizplus · Accepted Answer

When funeral homes are licensed by the government and made into a cartel, there is a reduction in competition, which leads to higher prices for consumers. Additionally, the number of funerals performed in the area is likely to fall as consumers may choose to seek burial services elsewhere or opt for less expensive alternatives.

If a Local Government Began Licensing Funeral Homes in the Area