10.3. Cartels

Try these first

1. 1.

   What is a cartel?

   Hint

   Think about how businesses can work together to influence price.

2. 2.

   Name one consequence of a cartel.

   Hint

   Consider how supply and demand are affected.

3. 3.

   What are cartels primarily concerned with?

   • Increasing competition
   • Price fixing
   • Quality improvement

   Hint

   Think about their ultimate goal.

4. 4.

   True or False: All collusion is illegal.

   • True
   • False

   Hint

   Consider what is considered legitimate business collaboration versus illegal collusion.

5. 5.

   A newly established construction company was accused of being part of a cartel. Discuss the steps they should take to defend themselves legally.

   Hint

   Consider what they need to prove to show they acted independently.

6. 6.

   Research an historical example of a cartel, analyze the economic consequences that followed its dismantling.

   Hint

   Reflect on how markets may benefit once collusion is ended.