What is a cartel?

Question

What is a cartel?

Quizplus · Accepted Answer

A cartel is a group of independent producers or sellers that agree to fix prices, limit supply, or assign customers in a particular market. This is done to maximize joint profits, and is usually illegal due to its negative impact on competition and consumers.

Answer: D
 While a group of firms collectively regulating an industry could take many different forms, this could be considered an example of a cartel if they were specifically colluding to fix prices and limit competition. However, without more specific information it's difficult to determine if this is a cartel or some other type of industry association.

What Is a Cartel