Which of the following market structures describes an industry in which a group of firms formally agree to control prices and output of a product?

Question

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A cartel is a type of market structure where a group of firms agree to coordinate their production levels or prices in order to increase their profits. This is often done by formal agreements, such as contracts or mergers, between the firms. This type of market structure is often seen in industries with high barriers to entry, such as the oil industry or the diamond trade.

Which of the Following Market Structures Describes an Industry in Which