A cartel is a group of firms which agree to
A)behave competitively.
B)raise the price of their products.
C)lower the price of their products.
D)increase the amount they produce.
E)cheat on each other.

Question

Quizplus · Accepted Answer

A cartel is formed when firms agree to coordinate their actions to increase profits. One way to achieve this is by raising the price of their products, as this allows them to collectively earn higher profits than they would if they were competing against each other.

A Cartel Is a Group of Firms Which Agree to