- 1 Marks
Question
An arrangement between rival firms in an industry to operate the same policies on pricing is called
A. Cartel
B. Alliance
C. Franchising
D. Collaboration
E. Joint venture
Answer
Answer: A. Cartel
Explanation:
A cartel is an agreement between competing firms to control prices, production, or marketing to reduce competition. This is illegal in many countries as it undermines fair competition.
- Tags: Cartel, Market Arrangements, Pricing Policies
- Level: Level 1
- Topic: The Business Environment
- Series: MAY 2022
- Uploader: Kwame Aikins