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Explain how cartels operate and why they can be dangerous

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How cartels operate?

Cartels are competitors in the same industry and seek to reduce that competition by controlling the price in agreement with one another. Tactics used by cartels include reduction of supply, price-fixing, collusive bidding, and market carving.

Why they can be dangerous?

They injure consumers by raising prices and restricting supply. They create market power, waste and inefficiency in countries whose markets would otherwise be competitive.

Hope it helps...

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