What is a cartel?
A. A government agency
B. A small retail group
C. A group of producers who agree to limit output
D. A group of student entrepreneurs
Answer (2)
The correct answer is letter C. A group of producers who agree to limit outputA cartel is a group of companies or countries that work together like one company. For example, OPEC is a cartel of oil-producing nations that agree on how much oil to produce to control prices. This can make gasoline more expensive worldwide.
The correct answer is C. A group of producers who agree to limit output.A cartel is an agreement between competing producers or businesses to control prices, limit production, or divide markets among themselves to reduce competition and increase profits. This often leads to higher prices for consumers.
