Most cartels are:
A) illegal in the United States as a result of the Sherman Antitrust Act.
B) illegal everywhere in the world.
C) legal in the United States as long as the government is able to regulate prices in the market.
D) legal in the United States as long as the firms involved are foreign-owned.

Question

Quizplus · Accepted Answer

Cartels are agreements among competing firms to restrict output and raise prices, which violates the Sherman Antitrust Act in the United States. This act prohibits anticompetitive behavior and promotes competition in the market, which helps protect consumers from high prices and limited choices. Therefore, most cartels are illegal in the United States.

Most Cartels Are