A cartel is
A)a group of firms promoting competition.
B)most common in monopolistic competition.
C)a collusive group of firms.
D)no longer possible in our global economy.

Question

Quizplus · Accepted Answer

A cartel is a collusive group of firms that work together to set prices and output levels in order to maximize profits. This type of behavior is illegal in many countries, including the United States, because it reduces competition and harms consumers. Cartels are most commonly found in oligopolistic markets, where a small number of firms dominate the industry.

A Cartel Is