Cartels: a. encourage competition. b. attempt to restrict output in order to raise prices. c. rely on legally enforceable contracts between cartel participants. d. rely on advertising and packaging to increase profits. e. All of the above.

Question

Mattie Moon

Business

12 July, 12:37

Cartels: a. encourage competition. b. attempt to restrict output in order to raise prices. c. rely on legally enforceable contracts between cartel participants. d. rely on advertising and packaging to increase profits. e. All of the above.

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Answers (1)

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Lindsay Chambers · Answer 1

B - Attempt to restrict output in order to raise prices.

Explanation:

Cartels is similar to a group in which every member is a giant producer together they control how much product will go in the market or how much price would be charged.

So the basic aim of cartels is to control the prices and to achieve that there are various methods they can use, one of these methods is: They will stop the product create a shortage, and then increase up the charges.