Cartels
A cartel is a group of independent companies that work together to control prices and limit competition in a specific market. By coordinating their actions—such as setting production levels or agreeing on prices—cartels aim to increase their profits and reduce the uncertainties of a competitive market. This practice is generally illegal in many countries because it undermines fair competition, harms consumers by keeping prices high, and can stifle innovation. Antitrust laws are often enacted to prevent such agreements and promote a healthy market environment.
Additional Insights
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A cartel is a group of businesses or organizations that come together to control prices and limit competition in a particular market. By coordinating their actions—like setting prices, limiting production, or dividing markets—they can increase profits at the expense of consumers, who have fewer choices and potentially higher costs. Cartels are often illegal in many countries because they undermine fair competition and can harm the economy. Regulatory authorities monitor and challenge cartel behavior to maintain a competitive marketplace and protect consumers’ interests.