GK
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Cartels is a form of
|
|
Monopoly
|
|
|
Collusive oligopoly
|
|
|
Non-Collusive oligopoly
|
|
|
None of these
|
Explanation:
Detailed explanation-1: -A cartel is a form of collusion between suppliers. A cartel occurs when two or more firms (usually within an oligopoly) enter into agreements to restrict the market supply and thereby fix the price of a product in a particular industry.
Detailed explanation-2: -The formation of a cartel involves open or explicit forms of collusion. Cartels are formed for the mutual benefit of member firms who agree on pricing, terms, and output.
Detailed explanation-3: -Collusive oligopoly is a form of the market, in which there are few firms in the market and all of them decide to avoid competition through a formal agreement. They collude to form a cartel, and fix for themselves an output quota and a market price.
There is 1 question to complete.