A cartel abides by a formally written agreement that specifies the output and price of each member firm and is a form of overt collusion. True.
A cartel is common in an oligopoly. It is when firms that operate in an industry come together to decide the price and output that they would sell their goods and services. It is expected that all firms sell at the price agreed on and sell the quantity of goods that was agreed on.
An Oligopoly is when there are few large firms operating in an industry. An oligopoly sets the price at which they sell their goods and services. There are high barriers to entry or exit of firm
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