Asked by
chalew endeshaw
on Oct 12, 2024
Verified
A cartel is
A) generally legal in the United States.
B) a group of firms acting under collusion to control output and maximize group profits.
C) similar to a monopolistically competitive industry.
D) a group of firms acting like a perfectly competitive industry.
Cartel
An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.
Collusion
An agreement between rival firms to cooperate in a way that increases their profits, often by fixing prices or limiting production.
Group Profits
The combined earnings of a conglomerate or group of companies under a single parent corporation.
- Recognize lawful and unlawful competitive actions across various market frameworks.
- Identify the circumstances that lead to the formation of collusion and cartels, as well as their impact on market dynamics.
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Learning Objectives
- Recognize lawful and unlawful competitive actions across various market frameworks.
- Identify the circumstances that lead to the formation of collusion and cartels, as well as their impact on market dynamics.