ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A cartel is an association by producers established to coordinate prices and production.

Detailed explanation-2: -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-3: -A cartel is a formal agreement among firms in an oligopolistic industry. Cartel members may agree on such matters as prices, total industry output, market shares, allocation of customers, allocation of territories, bid-rigging, establishment of common sales agencies, and the division of profits or combination of these.

Detailed explanation-4: -A cartel is a special case of oligopoly when competing firms in an industry collude to create explicit, formal agreements to fix prices and production quantities. In theory, a cartel can be formed in any industry but it is only practical in an oligopoly where there is a small number of firms.

Detailed explanation-5: -The correct answer is Oligopoly. A group of independent producers whose intention is to increase their collective profit by various restricting practices such as price fixing, limiting supply, etc. is called as the Cartel.