A group of firms that gets together to make price and output decisions is called ?
Correct answer: B. a cartel
- A. a concentrated industry.
- B. a cartel
- C. price leadership
- D. an oligopoly.
Explanation
A cartel is a group of firms that cooperates by jointly deciding price, output, or market shares. Price leadership instead involves one firm setting the price while others follow.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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