A Cartel Is

question 175

Multiple Choice

A cartel is

• A) a market structure with a small number of large firms.
• B) a market structure with a large number of small firms.
• C) a group of firms acting together to raise price, decrease output, and increase economic profit.
• D) a market with only two firms.
• E) another name for an oligopoly.

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Definitions:

Debit Memorandum

An internal document sent from one department to another within a company to notify an adjustment of accounts, usually an increase in expense or a decrease in assets.

Merchandise Inventory

Refers to the goods that a company has on hand for the purpose of selling to customers.

Sales Discount

A reduction in the sale price offered by a seller to a buyer, typically to prompt early payment or reward customer loyalty.

Freight Costs

Freight costs refers to the charges involved in transporting goods by land, sea, or air. This includes the expenses associated with moving merchandise from the point of origin to its destination.