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

Question

Quizplus · Accepted Answer

A cartel is a group of firms that agree to work together in order to limit competition and increase profits. They often do this by agreeing to limit production or to fix prices at a higher level than would exist in a competitive market. This behavior is illegal in many countries, as it is anti-competitive and harms consumers.

A Group of Firms That Try to Work Together to Earn