Question

GoGo Gas and Fab Fuel are among the few large producers of gasoline in the country. Along with other large producers, they have formed a formal organization to control the output and price of gasoline in that country. What is such an organization called?

A) collusion
B) corporation
C) partnership
D) cartel

Answer 1

The answer is D.) Cartel

Answer 2

Collusion and cartel are both practices to limit the competition and fixing prices.

Collusion is secretive and ilegal. Cartel is formally organized like OPEC.

The answer is cartel.