PRESENTATION OUTLINE
Definition:
A FORMAL ORGANIZATION OF PRODUCERS THAT AGREE TO COORDINATE PRICES AND PRODUCTION.
An association of producers established to coordinate prices & production.
Cartels:
Cartels can only survive if every member keeps to it's agreed output levels.
IF EVERY CARTEL MEMBERS CHEATS, TOO MUCH PRODUCT REACHES THE MARKET & PRICES FALL.
Cartels usually do not last very long.
Fact:
Cartels are illegal in the United States.
