A cartel is
A) another name for a firm in an oligopoly.
B) a collusive agreement among a number of firms.
C) a government body that regulates an industry.
D) an antitrust law.
E) a type of regulation that focuses on quantities rather than price.

Question

Quizplus · Accepted Answer

A cartel is a collusive agreement among a number of firms to limit competition and increase their profits through cooperation. They typically agree to set prices or output levels in order to reduce competition and increase their market power. Cartels are generally illegal under antitrust laws, but they can be difficult to detect and enforce.

A Cartel Is