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Suppose the only three existing manufacturers of video game players signed a written contract by which each agreed to charge the same price for products and to distribute their products only in the geographical area assigned them in the contract. This best describes:

Respuesta :

Samawati

Answer:

Cartel

Explanation:

A cartel is an association of large businesses that formally agree to work together to protect their interests.  Cartels regulate supply to the markets and manipulate prices. Once formed, the cartel behaves as a single entity. Its objective is to maximize profits for each member.

The three organizations have come together and allocated themselves to regional markets. Each business will have full control of the market in its designated area. To maximize profits, cartel agree to

  • set high prices
  • restricts  market supply
  • breakdown market into territories or regions

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