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One of the Major Characteristics of a Cartel Is That

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One of the major characteristics of a cartel is that it has a highly elastic demand curve.


Definitions:

Deadweight Loss

A decrease in economic efficiency that happens when a good or service does not reach or cannot reach its equilibrium.

Profit Maximizing

The method or approach of aligning production and pricing to maximize profit.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Monopsony Power

The market power held by a single buyer to influence the price at which they purchase goods or services.

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