What is the difference between a monopoly and a cartel?

The main difference between a monopoly and a cartel is the way in which they maintain market share. A monopoly is a single entity that controls an entire market, such as a company that produces a specific product with no other competitors. A cartel is a group of companies that seek to cooperate and maintain market share by setting prices, production quotas, or other anti-competitive measures. In Virginia, antitrust law prohibits anti-competitive activity, such as monopolies and cartels. The purpose of this type of law is to promote competition and protect consumers from predatory businesses. Monopolies are illegal in Virginia because they create an unfair advantage, allowing the monopoly to dictate prices and terms of production without considering the needs of other businesses or consumers. Cartels are also illegal, because they are agreements between multiple companies to fix prices and production output, which can be used to drive out smaller or newer companies that are unable to compete. In summary, a monopoly is a single entity that controls an entire market, while a cartel is a group of companies that seek to cooperate and maintain market share by setting prices, production quotas, or other anti-competitive measures. Both of these practices are illegal under Virginia antitrust law, and the purpose of the law is to protect consumers and promote competition.

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