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A. The economic definition of a cartel is:

a. competing firms working together to fix prices and output.
b. firms and individuals trafficking drugs and other illegal goods.
c. increased competition by firms through advances in technology.
d. firms competing for customers by continually lowering prices.

B. Cooperation between firms in an industry is known as:

a. a price taker.
b. monopoly power.
c. collusion.
d. a cooperative.

C. In the United States, cartels are:

a. illegal.
b. heavily regulate
c. subsidized

Respuesta :

hamzatauseef

Answer:

A) Competing firms working together to fix prices and output.

B) Collusion.

C) Illegal

Explanation:

A cartel is when a group of competing producers of a good collude together for their own economic good and benefits. They generally form oligopolistic market structures with coordination and thus can take decision on restricting production of a articular good and influencing prices for their own good.

A collusion thus helps a hand full of companies to dominate the market of a particular product that they all produce. They can even form artificial barriers to entry for new firms as they control all or most of the relevant market forces.

In USA cartels are illegal as per the provision of anti-trust laws.

Hope that helps.

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