Question
A ___ is an association of producers that control supply and prices.
A- independent agent
B- foreign direct investment
C- cartel
D- quota
A- independent agent
B- foreign direct investment
C- cartel
D- quota
Asked by: USER3917
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167 Answers
Answer (167)
Answer: Cartel
Explanation:
A Cartel is an association of producers that control supply and prices. A cartel is a group of apparently independent producers whose goal is to increase their collective profits by fixing prices, controlling supply and other practices that restrict the output from reaching the equilibrium level. Thus, the prices are maintained high by restricting supply which enables the produces to earn high profits.