ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cartel
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Price-fixing
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Collusion
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Collision
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Detailed explanation-1: -A cartel is a formal agreement between a group of producers of a good or service to control supply or to regulate or manipulate prices. Cartels often fix prices, define trading terms, and allocate trade or market share rules to achieve economies of scale.
Detailed explanation-2: -A naked agreement among competitors to fix prices is almost always illegal, whether prices are specified at a minimum, maximum, or within some range. Illegal price fixing occurs whenever two or more competitors agree to take actions to raise, lower, maintain, or stabilize the price of any product or service.
Detailed explanation-3: -"The Three Types of Collusion: Fixing Prices, Rivals, and Rules” by Robert H.
Detailed explanation-4: -Answer and Explanation: In a market, when firms merge to fix price and quantity or divide market share to maximize their gain by manipulating consumers, this merger is known as a cartel, and it is generally considered as illegal in most economies.