A cartel is:

Question

A cartel is:

Quizplus · Accepted Answer

A cartel is a group of firms that collude with each other to make production decisions together, typically regarding quantity or price. This collusion is often an attempt to increase profits, either by reducing competition or by increasing the price of the product. It differs from a duopoly (choice A), which is an industry with only two firms, as well as from a firm that always has a dominant strategy (choice B), which is a different concept altogether. Choice D is also incorrect, as a cartel does not necessarily have to be the leader of an industry, though it may have significant market power or market share.

A Cartel Is