A group of firms that colludes to limit competition by assigning production quotas and setting a uniform price for all is called a(n)
A) conglomerate
B) balanced oligopoly
C) cartel
D) oligopoly with kinked demand curves for each of the firms in the collusion
E) unbalanced oligopoly

Question

Quizplus · Accepted Answer

A cartel is a formal agreement among competing firms to control prices or exclude entry of a new competitor in a market, often by setting production quotas and prices collectively, which limits competition.

A Group of Firms That Colludes to Limit Competition by Assigning