what is cartels?
Dear Student,
Cartels are agreements between a group of firm to refrain from competing amongst themselves. The firms enter into these anti-competitive agreements to enable the group to gain control over the market share. The decisions relating to price, output and supply are made jointly in consultation with the group.
In simple terms, Cartel is an arrangement among business firms to exert control over the market by influencing the price of the product. The main purpose of cartels is to maximize profit.
Organization of Petroleum Exporting Countries (OPEC) is an example of a cartel in the international market. It tries to control the international price of crude by setting production targets.
Regards,
Cartels are agreements between a group of firm to refrain from competing amongst themselves. The firms enter into these anti-competitive agreements to enable the group to gain control over the market share. The decisions relating to price, output and supply are made jointly in consultation with the group.
In simple terms, Cartel is an arrangement among business firms to exert control over the market by influencing the price of the product. The main purpose of cartels is to maximize profit.
Organization of Petroleum Exporting Countries (OPEC) is an example of a cartel in the international market. It tries to control the international price of crude by setting production targets.
Regards,