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2 years ago

A cartel differs from a monopoly in that ________.

Business

2 answers:

Harrizon [31]2 years ago

4 0

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

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

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2. Demand and supply of goods

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3. Elasticity of demand

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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]2 years ago

3 0

I believe the answer is: B. 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

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Answer: The correct answer is "B. lower".

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3 years ago

A particular plot of land can produce 700 kg of beef per hectare. beef sells for $4/kg. if that land is converted to producing c

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The computation shows that the amount that will be made will be $420.

<h3>How to compute the value?</h3>

From the information, it was stated that a particular plot of land can produce 700 kg of beef per hectare. beef sells for $4/kg.

It was then stated that if that land is converted to producing corn, which sells for $0.15/kg, approximately how much will the farmer make selling corn.

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1 year ago

Ratio Calculations Assume the following relationships for the Caulder Corp.: Sales/Total assets 2.2x Return on assets (ROA) 5% R

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Answer:

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Explanation:

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