USA HISTORY

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: -Oligopolistic firms join a cartel to increase their market power, and members work together to determine jointly the level of output that each member will produce and/or the price that each member will charge. By working together, the cartel members are able to behave like a monopolist.

Detailed explanation-3: -The main difference between the two is that monopolies have only one dominant player who single handedly controls the production, sales, and pricing of a particular product, whereas cartels are groups of such dominant organizations that work together to manipulate the market to their benefit.

Detailed explanation-4: -A cartel is a group of suppliers that colludes to operate like a monopolist. The cartel formed by the members of the Organization of Oil Exporting Countries (OPEC) is an example of a cartel that was successful in achieving its objectives for a long period.

Detailed explanation-5: -A market sharing cartel is an agreement between competitors to divide the market or markets among themselves by agreeing not to compete for each other’s customers, or not to enter or expand into a competitor’s market.