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Instability of Cartels

A group of bu...

Question

A group of business firms constituted with the objective of limiting competition in the market so as to maximize the profits. This is an example of which of the following?

A

Collusion

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B

Cartel

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C

Non-collusion

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D

Monopolists

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Solution

The correct option is B Cartel
A group of business firms constituted with the objective of limiting competition in the market so as to maximize the profits and sharing the market is known as a cartel.

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