A group of firms that act in unison to maximize collective profits is called a
A)monopolistically competitive industry.
B)monopoly.
C)cartel.
D)Nash equilibrium market.

Question

Quizplus · Accepted Answer

A group of firms that act in unison to maximize collective profits is called a cartel. A cartel is formed when firms in the same industry come together and agree to limit production or fix prices, thereby reducing competition among themselves and increasing profits for each member of the cartel. This type of behavior is illegal in many countries, including the United States, where antitrust laws exist to prevent such collusion.

A Group of Firms That Act in Unison to Maximize