Cartels
A) encourage competition.
B) attempt to restrict output in order to raise prices.
C) rely on legally enforceable contracts between cartel participants.
D) rely on advertising and packaging to increase profits.
E) All of the above.

Question

Quizplus · Accepted Answer

Cartels form to control the supply of a product or service with the aim of influencing its price on the market. By restricting output, they can artificially raise prices, which benefits the cartel members at the expense of consumers. Cartels typically operate through agreements or understandings among participants rather than relying on advertising, packaging, or legally enforceable contracts, as their activities are often illegal or regulated in many jurisdictions.