Question

A cartel isA) a group of producers that agree to set common prices and output quotas.B) a group of consumers that bid against each other for the same product.C) a government agency that regulates markets.D) an arbitrator to settle disputes between consumers and producers.

Answer 1

Answer: A cartel is "A) a group of producers that agree to set common prices and output quotas."

Explanation: In economics a cartel is a formal agreement between companies in the same sector, whose purpose is to reduce or eliminate competition in a given market. The cartels are usually aimed at developing a control over the production and distribution in such a way that through the collusion of the companies that form it, they form a monopolistic market structure, obtaining a power over the market in which they obtain the greatest benefits possible to the detriment of consumers.