Question

A cartel is
a. Not illegal in the United States
b. An organization intended to increase competition in an industry
c. A group of firms with an explicit, formal agreement to fix prices and output shares in a particular market
d. A type of market structure

Answer 1

Answer:

c. A group of firms with an explicit, formal agreement to fix prices and output shares in a particular market

Explanation:

Cartel is a group of few oligopolistic firms, who collude with each other to increase their joint profits & market domination.

So, they are a group of firms with an explicit, formal agreement to fix prices and output shares in a particular market

Example : OPEC (Organisation of petroleum exporting countries) is a Cartel.