An formal agreement to set prices and output is called:

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A formal agreement to set prices and output is called a cartel. Collusion refers to any type of agreement between firms to coordinate their behavior, which may or may not involve setting prices or output. Monopolistic competition refers to a market structure where many firms compete by offering slightly differentiated products. Kinked demand is a theory used to explain why firms in oligopolistic markets may choose to maintain stable prices despite changes in their costs or demand.

An Formal Agreement to Set Prices and Output Is Called