A cartel differs from a monopoly in that:
a. One corporation has complete control of a product or service.
b. Businesses making the same product agree to limit production.
c. One firm sets the prices for all goods in an industry.
d. All the firms involved in the same business merge into one entity.
Answer (2)
A cartel differs from a monopoly in that B) businesses making the same product agree to limit production. A cartel is an agreement between producers of goods, usually primary products like oil or natural gas, who work together to set a price at an agreed upon price that is a distortion above of what the market's equilibrium price would be for the good without the cartel's intervention.
A cartel is a collaboration among businesses that produce the same product to limit production and raise prices. In contrast, a monopoly is when one company has complete control over a market. Therefore, the correct answer is B.
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