A cartel O A is legal in the United States if the industry h

A cartel O A. is legal in the United States if the industry has an HHI that is less than 2,000 O B. is a group of firms acting together to limit output, raise price, and increase economic profit O c. is a stable organization that can maintain the monopoly price indefinitely O D. cannot operate legally across countries Click to select your answer DOLL

Solution

A cartel refers to the group of firms that collude with each other (generally in illegal manner) to restrict the industry output so that a higher price can be maintained resulting in a higher profit for each one of them.

So, it can be stated that a cartel is a group of firms acting together to limit output, raise price, and increase economic profit.

Hence, the correct answer is the option (B).