A _____ is a group of two or more firms that formally agree to coordinate their production and pricing decisions to maximize joint profits.

Question

Quizplus · Accepted Answer

A cartel is a group of firms that work together to reduce competition in a market by coordinating their production and pricing decisions to maximize joint profits. By doing this, they can drive up prices, limit supply, and control the market. Examples of cartels include OPEC (Organization of the Petroleum Exporting Countries) and the Diamond Cartel.

A _____ Is a Group of Two or More Firms