A cartel is a form of
A) collusion.
B) vertical merger.
C) noncooperative competition.
D) negative sum game.

Question

Quizplus · Accepted Answer

A cartel is a form of collusion where firms in the same industry agree to work together to achieve a common goal, usually to increase profits by fixing prices or limiting output. This is a non-competitive behavior as firms in the cartel work together to control the market instead of competing against each other. A cartel is not a vertical merger, as a merger involves the combination of two or more firms into one entity. A cartel is also not a negative sum game, as the goal is to increase profits for all involved firms, rather than having one firm negatively impact another.

A Cartel Is a Form of