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What is the primary means cartels use to control the price of the goods they produce

2 Answers

2 votes

controlling supply levels

answered
User Ezhil V
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2 votes

It is commonly understood in economics that competition lowers prices by having companies fight each other for the consumers earned dollars.

A cartel is, then, an organization that exists for the purpose of controlling the supply and production of an item in order to fix the price.

By eliminating competition, a cartel is able to dictate to the market what they believe is an acceptable or desirable price.


answered
User Asraf
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