Final answer:
If a market is organized by a cartel, we can expect to see an oligopoly structure, where a few firms collaborate to behave similarly to a monopoly, controlling prices and output for maximum profits.
Step-by-step explanation:
Market Structures and Cartels
When a market is organized by a cartel, we can expect to see an oligopoly structure. This is because a cartel consists of a group of independent companies that collaborate to limit competition, control prices, and maximize collective profits, much like a single monopolist. In an oligopoly, market power is concentrated in the hands of a few firms who are capable of influencing the market through their strategic decisions such as output and pricing. These firms may collaborate as if they were a single monopoly to gain higher profits by reducing output and raising prices. Examples of oligopolies include the commercial aircraft industry, with Boeing and Airbus, and the U.S. soft drink industry, dominated by Coca-Cola and Pepsi.
Contrasting with perfect competition, where many firms sell identical products and are price takers, and with monopolistic competition, where numerous firms sell differentiated products with some pricing power, oligopolies have significant barriers to entry and a greater ability to set prices. The actions of firms within an oligopoly are interdependent and strategic, as they must consider the potential reactions of their competitors when making decisions.