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A cartel is a joing of all business of same sort to form a single business. Cartel mergers are profitable. For example there are three firms which behave as a cartel, if all firms collude to act as a single firm, the merger will be profitable in oligopolistic industries. It will ensure the firm will gain an economic profit and will eventually drive off the weaker firm and the price benifit will go to consumers. (Term cartel is used when similar businesses merge to form a single business, a monopoly).
What else can I help you with?
Why cartel fails?
cartel is formed by few sellers when they want to maximise profit ,what is the advantage of forming a cartel?
What is a centralized cartel?
A centralised cartel is an arrangement by all the members, where a centralised body decides on the pricing.
What is the name for a formal organization of producers that agrees to coordinate prices and production called-?
The name for a formal organization of producers that agree to coordinate prices and production is called a cartel.
Is Tesco a profitable or non profitable company?
They are profitable.
What is a sheik's cartel?
Opec
Can a merger be considered a means of raising additional equity capital?
Yeah, in some case it is considered as a means for raising additional capital but only in the case when one of the companies is financially strong then such a merger is profitable and according to activetrader-links.com if two companies with same strengths or weaknesses do a merger then such a merger will be in vain.
Is cartel masculine or feminine?
Is cartel masculine or feminine
Why cartel fails?
cartel is formed by few sellers when they want to maximise profit ,what is the advantage of forming a cartel?
What is the duration of The Cartel?
The duration of The Cartel is 1.5 hours.
Is cartel feminine?
No, the word "cartel" is masculine in Spanish.
What are types of merger?
Purchasing Merger Consolidation Merger
When was Gulf Cartel created?
Gulf Cartel was created in 197#.
When was Juárez Cartel created?
Juárez Cartel was created in 197#.
When was Colima Cartel created?
Colima Cartel was created in 1988.
When was Sinaloa Cartel created?
Sinaloa Cartel was created in 1989.
When was The Music Cartel created?
The Music Cartel was created in 1998.
When was Oaxaca Cartel created?
Oaxaca Cartel was created in 197#.
