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WAEC Commerce 2021 Question 12

Question 12

Business Combinations

An organization of producers of similar products, which controls output with the intention to fix price is a

  1. A.trust.
  2. B.syndicate.
  3. C.consortium.
  4. D.cartel.
Show the answer and explanation

Answer: D (cartel.)

Explanation

A cartel is an agreement among producers of the same product to limit output and fix prices while each firm stays independent.