Question 6
POST_UTME_EKSU
•
2017
•
COMMERCE
•
objective
What is the primary difference between a cartel and a monopoly in the context of home and foreign trade?
Answer Options
Correct Answer
A.
A cartel is a group of firms that collude to restrict output and raise prices, while a monopoly is a single firm that produces a good or service with no close substitutes.
B.
A cartel is a single firm that produces a good or service with no close substitutes, while a monopoly is a group of firms that collude to restrict output and raise prices.
C.
A cartel is a group of firms that collude to restrict output and raise prices, while a monopoly is a firm that produces a good or service with a high degree of market power.
D.
A cartel is a firm that produces a good or service with a high degree of market power, while a monopoly is a group of firms that collude to restrict output and raise prices.
Correct Answer
A
Correct Option:
A cartel is a group of firms that collude to restrict output and raise prices, while a monopoly is a single firm that produces a good or service with no close substitutes.
About This Question
This is
Post Utme Eksu
2017
Commerce
Question 6.
It is one of the
objective
questions from the
2017
Post Utme Eksu
Commerce
examination.