Cartels can effectively sustain large profits by controlling prices and reducing competition, but they are usually illegal due to their anti-competitive behavior. Cartels can create outcomes similar to a monopoly by controlling the market and setting prices, leading to limited choices for consumers. Therefore, all of the statements are true.

Solved

Cartels

Question 147

Multiple Choice

Cartels:

A) can effectively sustain large profits in the long run.
B) are usually illegal.
C) can create outcomes similar to a monopoly.
D) All of these statements are true.

Correct Answer: