A group of producers that agree to coordinate their production is called a
A) cartel.
B) monopoly.
C) free market competition.
D) vertical merger.

Question

Quizplus · Accepted Answer

A group of producers that agree to coordinate their production is commonly referred to as a cartel. In a cartel, the member firms typically try to limit competition by controlling the supply of goods or services and manipulating prices to maximize profits. This can be accomplished through various means, such as setting production quotas, dividing up market share, and engaging in price-fixing agreements. While cartels can be illegal and harmful to consumers, they can also be beneficial for producers who are able to capture higher profits through cooperation.

A Group of Producers That Agree to Coordinate Their Production