Question

A cartel differs from a monopoly in that
A. one firm sets the prices for all goods in an industry.
B. one corporation has complete control of a product or service.
C. all the firms involved in the same business merge into one entity.
D. businesses making the same product agree to limit production.

Answer 1

A cartel differs from a monopoly in that with a cartel you have multiple businesses making the same product which then agree on limiting production. Through this they manipulate the price then. This is not something a monopoly does, a monopoly is usually one company which has all the maret share over certain goods.