One major aim of a cartel is to

Assessment: WAEC SSCE - Economics - 2009 (Objective) Subject: Economics

Question 1 Report

One major aim of a cartel is to
Answer Details
A major aim of a cartel is to regulate output through quota systems. Cartels are formed by producers of a particular commodity to gain control over the supply and price of the commodity. The aim is to limit competition and increase prices by collectively setting output quotas for member firms. By agreeing on output levels, the cartel members can control the supply of the commodity in the market, which can lead to higher prices and increased profits for the member firms. Therefore, the primary goal of a cartel is to regulate production and maintain high prices for the commodity.

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