Paralegal Exam Prep

Category - Legal Envrmt

If oil producers decide to restrict output to make a larger profit, there would be:
  1. A monopoly
  2. An oligopoly
  3. A duopoly
  4. A cartel
  5. More competition
Explanation
Answer: C. If oil producers decide to restrict output to make a larger profit, there would be a cartel. A cartel is an agreement among competitors to control production, reduce competition, or fix prices. Under the Sherman Antitrust Act, cartels are illegal.
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