A cartel is an agreement among producers that seeks to artificially increase prices by arbitrarily raising them.

Question

Quizplus · Accepted Answer

This is the definition of a cartel. Cartels are formed when producers within an industry agree to work together to limit the supply of goods or services in order to raise prices in the market. This is done to increase profits for the members of the cartel. However, this is considered illegal in many countries, including the United States, where antitrust laws prohibit such behavior.

A Cartel Is an Agreement Among Producers That Seeks to Artificially