Which of the following are true about cartels?

Question

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Cartels are formed when a group of firms in an industry agrees to collude with the aim of limiting competition and raising prices. This creates a monopoly-like situation where the firms collectively control the supply of the good or service in question. As a result, the prices are high because monopoly supplants perfect competition. Option A is incorrect because once a high price is set, a member might be motivated to increase production to capture a larger market share, thereby reducing the effectiveness of the cartel. Option B is also incorrect because cartels are the opposite of perfect competition, which is characterized by low prices and many small firms. Option D is not entirely true because while reduced competitor production can happen, it's not always the case.

Which of the Following Are True About Cartels