A cartel is a group of firms that attempt to collude by coordinating price and output decisions.

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A cartel is formed when firms in an industry come together to coordinate their pricing and output decisions in order to maximize profits. This can involve agreements to limit production, set prices at the same level, and divide up markets. Cartels are illegal in many countries, including the United States, because they reduce competition and harm consumers.

A Cartel Is a Group of Firms That Attempt to Collude