In a market where a monopoly exists, what is a key characteristic that differentiates it from a cartel formed by multiple firms?

A monopoly is a market structure where a single company is the only seller of a product or service, meaning it has complete control over the market. This company can set prices and output levels without competition, which often leads to higher prices for consumers. In contrast, a cartel is formed when multiple firms agree to work together to control prices and limit competition among themselves. While both monopolies and cartels can lead to higher prices, the key difference is that a monopoly has no competition at all, while a cartel involves cooperation among several companies. For example, if a single company owns all the gas stations in a town, it can raise gas prices without any rivals, unlike a group of gas station owners who might form a cartel to agree on prices but still face competition from other areas.