ECONOMICS
COMPETITION AND MARKET STRUCTURES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Imperfect competition
|
|
|
Monopoly
|
|
|
Cartel
|
|
|
Market structure
|
Detailed explanation-1: -A cartel is an organization created from a formal agreement between a group of producers of a good or service to control supply or to regulate or manipulate prices.
Detailed explanation-2: -Cartel is a formal or informal agreement among number of firms in an industry to restrict competition.
Detailed explanation-3: -What is a Cartel? A Cartel is a group of firms or nations who attempt to control the price or supply of a commodity (such as oil) through mutual restraint on production. These associations of companies seek to control a market in a monopolistic manner.
Detailed explanation-4: -In the oil and gas industry, the Organization of the Petroleum Exporting Countries (OPEC) is often used as an example of a cartel.
Detailed explanation-5: -Cartel: A formal agreement among firms in an industry to set the price of a product and the outputs of the individual firms or to divide the market for the product geographically. To maximize profits, the firms collude and agree to a certain price.