What is a Cartel?
- A cartel is a group of firms that collude in a given market to restrain competition, often making quota arrangements among themselves.
How Do I Remember It?
- Think of a cartel as a team of businesses working together like a secret club. They make agreements to control prices and production, essentially restricting competition to benefit all members.
Real World Example
- OPEC (Organization of the Petroleum Exporting Countries) is an example of a cartel in the oil industry. Member countries collaborate to regulate oil production levels and influence global oil prices, showcasing how cartels can impact markets.
Follow us on TikTok, Instagram, and YouTube below.
