A cartel is a group of oligopolistic firms that engage in collusion, which means they work together to restrict output and raise prices in order to increase profits. This is often illegal in many countries, including the United States, as it results in higher prices for consumers and less competition in the market.

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A Cartel Is _____

Question 104

Multiple Choice

A cartel is _____

A) a group of oligopolistic firms that engage in collusion.
B) a group of monopolistically competitive firms that charge the same price.
C) usually legal in the United States.
D) an agreement among rival firms to set prices independently.
E) illegal throughout the world.

Correct Answer: