A cartel is a group of firms formally agreeing to control the price and output of a product, with its primary goal being to reap monopoly profits by replacing competition with cooperation. Cartels are illegal in the United States, but may be legal or tolerated in other nations. Therefore, all of the statements in the answer choices are correct.

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A Cartel

Question 111

Multiple Choice

A cartel:

A) is a group of firms formally agreeing to control the price and the output of a product.
B) has as its primary goal to reap monopoly profits by replacing competition with cooperation.
C) is illegal in the United States, but not in other nations.
D) all of the above.

Correct Answer: