What is the difference between a monopoly and a cartel?

A monopoly and a cartel are both forms of businesses that are considered to be anti-competitive in terms of their impact on markets and customers. The main difference between the two is the number of participants involved in the activity. A monopoly is an individual company or entity that has exclusive control over the production or selling of a certain product or service. This means that the company or entity is the only one that can supply that product or service. This creates an environment in which one company can control the prices, production, and quality of a certain product or service in a market. In contrast, a cartel is a formal agreement between two or more companies or entities that work together to control the prices, production, and quality of a certain product or service. Cartels are often illegal in most jurisdictions, including Kansas. Cartels can be used to restrict trade and raise prices. This harms competition, reduces customer choice, and can lead to higher prices for consumers. In summary, the main difference between a monopoly and a cartel is the number of participants involved in the activity. Monopolies involve a single participant in control of a market, whereas cartels involve two or more participants. Both types of anti-competitive practices can be detrimental to the market and can lead to higher prices and lower quality of goods and services.

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