A cartel is
A) another name for pure monopoly.
B) a coalition of consumers.
C) a highly stable arrangement.
D) a coalition of firms that agree to restrict output in an effort to earn higher profit.
E) an agreement between countries to reduce trade.

Question

Quizplus · Accepted Answer

A cartel is a coalition of firms that agree to restrict output in an effort to earn higher profit. This usually involves setting a specific level of output for each member, which helps to limit competition and keep prices high. Cartels are generally illegal in most countries because they result in higher prices for consumers and can reduce economic efficiency.

A Cartel Is