A group of firms that collude to limit competition is called a/an:

Question

Quizplus · Accepted Answer

An oligopoly is a market structure in which few large firms dominate the market, while a duopoly is a specific type of oligopoly where only two firms control the market. The kinked demand theory explains the behavior of firms in an oligopoly, but it is not a group of colluding firms. A cartel is a group of firms that collude to limit competition, often by fixing prices or output levels. Therefore, the best answer is C) cartel.

A Group of Firms That Collude to Limit Competition Is