An association of producers in an industry that agree to set common prices and output quotas to prevent competition is
A) a tariff.
B) a patent.
C) economies of scale.
D) a cartel.

Question

Quizplus · Accepted Answer

A cartel is an association of producers in an industry that agree to set common prices and output quotas to prevent competition. This is usually done to increase profits by reducing competition and increasing prices. Some famous examples of cartels include OPEC, which controls the global supply of oil, and the Diamond Cartel, which controls the supply of diamonds.

An Association of Producers in an Industry That Agree to Set