A cartel is

Question

A cartel is

Quizplus · Accepted Answer

Cartels are formal agreements among firms to collude and coordinate their actions in order to raise prices and restrict output, often with the aim of increasing profits. Cartels are illegal in many countries, including the United States, because they reduce competition and harm consumers by leading to higher prices and reduced product variety. While cartels can be successful in raising profits for member firms, they are vulnerable to various factors that can undermine their effectiveness, such as cheating by cartel members, entry of new competitors, and changes in market conditions.

A Cartel Is