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3 years ago

A cartel differs from a monopoly in that ________.

Business

2 answers:

Harrizon [31]3 years ago

4 0

<u>A cartel differs from a monopoly in that by businesses making the same product agree to limit production. </u>

Further Explanation:

Cartel: It is an association formed by manufacturer, supplier, or both to limit production level, to fix prices, or to share customers or markets among themselves.

Monopoly: It is a market structure characterized by one producer selling a unique product. There are barriers to exit and entry. The firm in the monopoly is price maker, not the price taker.

Justification for the correct and incorrect answer:

One corporation has complete control of a product or service: This option is incorrect.

In the case of monopoly, there is a single producer who has control over services or product. In the case of a cartel, there are many producers who form an association to limit the supply or to fix the prices.

Businesses making the same product agree to limit production: This option is correct.

In the case of a monopoly, there is only a single producer who sells unique services or products. In the case of the cartel, there are many producers who are selling the same product agree to form an association to limit the supply or to fix the prices.

One firm sets the prices for all goods in the industry: This option is incorrect.

The one firm setting the price for product or service is a characteristic of the monopoly, but the cartel is characterized by many firms that agree to set the price.

All the firms involved in the same business merge into one entity: This option is incorrect.

The monopoly is characterized by a single producer, so it cannot merge with other business and cartel is an association of producer, supplier, or both.

Learn more:

1. Demand and type of goods

brainly.com/question/11220857

2. Demand and supply of goods

brainly.com/question/11045011

3. Elasticity of demand

brainly.com/question/2396092

Answer details:

Grade: High School

Subject: Economics

Chapter: Types of markets

Keywords: A cartel, a monopoly, agree to limit production, control of a product or service, set the prices for all goods, same business merge into one entity, all the firms involved in, business making the same product, merge into one entity, one firm sets the prices, all goods in a n industry.

Marrrta [24]3 years ago

3 0

I believe the answer is: B. <span>businesses making the same product agree to limit production.

In a monopoly, only one single business exist that control the production of a certain goods in the market.
For cartel, there are a lot of established businesses with different ownership, but they agreed to control their production in order to maintain the price level in the market.
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3 years ago

At a price of $5, Sam buys 10 units of a product; when the price increases to $6, Sam buys 8 units. Martha says Sam's demand has

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Based on the information given, Martha is incorrect. Sam's quantity demand has decreased.

<h3>What is demand?</h3>

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2 years ago

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3 years ago

A bank has $8,000 in deposits and $6,000 in loans. It has loaned out all it can given the reserve requirement. It follows that t

Wittaler [7]

Answer:

c. 25 percent.

Explanation:

The computation of the reserve requirement percentage is shown below:

Given that

Deposits made = $8,000

Loans = $6,000

So the required reserve is

= deposits made - loans

= $8,000 - $6,000

= $2,000

Now the required reserve is

= $2,000 ÷ $8,000

= 25%

Hence, the correct option is c. 25 percent

We simply applied the above formula so that the correct value could come

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3 years ago

Suppose that there is asymmetric information in the market for used cars. Sellers know the quality of the car that they are sel

zepelin [54]

Answer:

$22,500

Explanation:

Chance of getting low quality car = 50%

Chance of getting high quality car = 50%

Cost of low quality car = $15,000

Cost of high quality car = $30,000

So, Price of the car = 50% of lower quality + 50% of higher quality

= (50% × $15,000) + (50% ×30,000)

= $7,500 + $15,000

= $22,500

Hence, price of the used car will be $22,500.

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3 years ago