Features of the market that helps to form a cartel.
Concept Introduction:
Cartel: A cartel is an organization which is formed by a formal agreement between the groups of producers, to control the price of the product. The goal of the organization is to maximize collective profits.
Oligopoly Market: An oligopoly market structure is a market where a few firms sell similar but differentiated products. But the special feature is that only a few firms hold the major market share. Oligopoly market is said to be highly concentrated. They dominate the pricing strategy. They are the market leaders. Others are the followers.
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