Explicit collusion by members of a cartel is illegal in the United States and many other countries. Nonetheless, cartels do manage to form and, in some cases, persist for extended periods. Can you identify actions cartel members could take that might help them coordinate their actions but stop short of explicit agreements?

List five examples of markets that you would consider to be oligopolies (a few firms engaged in strategic competition). For each example, explain whether you think the market is an example of Cournot or Bertrand competition.

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A cartel mainly comprises of independent companies whose aim is to increase their profits They do this by limiting supplies of some produces and fixin... View the full answer