A group of firms that try to work together to earn monopoly profits is called a(n)
A) patent.
B) public enterprise.
C) cartel.
D) natural monopoly.

Question

Quizplus · Accepted Answer

A cartel is a group of firms that agree to work together to restrict output and raise prices, in order to earn monopoly profits. This typically involves some form of collusion and coordination, such as setting output quotas or dividing up geographic markets. Cartels can be illegal in many countries, as they are considered anti-competitive and can harm consumers by leading to higher prices and reduced innovation.

A Group of Firms That Try to Work Together to Earn