Overview
Understanding the difference between cartels and monopolies is crucial in economics. A cartel is formed when multiple companies collaborate to control prices and limit competition, which can lead to higher prices for consumers. In contrast, a monopoly occurs when a single company dominates the marke...
Key Terms
Example: The OPEC oil cartel regulates oil production to influence prices.
Example: A local utility company that is the only provider of electricity.
Example: Two companies agreeing to set the same prices.
Example: Perfect competition vs. monopoly.
Example: The Sherman Act in the U.S. prohibits monopolistic practices.
Example: Companies agreeing to charge the same price for a product.
Related Topics
Key Concepts
price controlmarket dominancecompetitioncollusion