What is the difference between a monopoly and a cartel?

A monopoly and a cartel are two economic terms that are commonly used to describe different types of business arrangements. Both terms are of particular relevance to antitrust law in Washington. A monopoly is an exclusive control over a certain market by one company. The company has no competitors and can manipulate the market by setting prices and controlling the supply and demand of a good or service. With a monopoly, there is usually little or no competition and the company is able to take advantage of the consumer by charging higher prices. A cartel, on the other hand, is when two or more companies have an agreement to collude and fix prices or output in order to limit competition and create a monopoly-like situation. Cartels are illegal in the US and are considered a violation of antitrust laws. The main difference between a monopoly and a cartel is that a monopoly is a single company that has total control over the market, while a cartel is an agreement between two or more companies to fix prices and control the supply and demand of a good or service. Monopolies can be harmful to the consumer, while cartels are considered illegal and carry heavy antitrust penalties.

Related FAQs

What is an example of tying in an antitrust case?
How does antitrust law affect telecommunications?
What are the rights of consumers under antitrust law?
What is the role of antitrust law in protecting consumers from harm?
What challenges might antitrust laws face in the future?
What antitrust laws are specific to the US?
How have antitrust laws changed over time?
How can a business defend itself against antitrust charges?
What are the different approaches to antitrust enforcement?
What are the implications of global antitrust law?

What is the difference between a monopoly and a cartel?

Related FAQs

Related Blog Posts