Economics Part B

Table of Contents


Understanding What is Cartel

A situation where a number of companies in the same sector of the economy come together with a view to reducing competition between themselves. In extreme conditions, a cartel can actually become a monopoly.

In the USA, as in many countries, organizing for the purpose of creating a cartel is prohibited without permission. The agency responsible for supervising the activities of cartels and monopolies is the Anti-Trusts Authority at the Ministry of Industry, Trade and Employment.