A. The economic definition of a cartel is: a. competing firms working together to fix prices and output. b. firms and individuals trafficking drugs and other illegal goods. c. increased competition by firms through advances in technology. d. firms competing for customers by continually lowering prices. B. Cooperation between firms in an industry is known as: a. a price taker. b. monopoly power. c. collusion. d. a cooperative. C. In the United States, cartels are: a. illegal. b. heavily regulate c. subsidized

A. The economic definition of a cartel is: a. competing firms working together to fix prices and output. When firms in the same industry collaborate to control prices and regulate production, they form what is referred to as a cartel. The purpose behind this is to increase their collective profits by reducing competition, which often leads to higher prices for consumers.

B. Cooperation between firms in an industry is known as: c. collusion. Collusion is a secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others. When firms collude, they might agree on prices, production levels, market shares, or other competitive elements to gain a mutual advantage at the expense of the consumers.

C. In the United States, cartels are: a. illegal. In the U.S., antitrust laws, such as the Sherman Act, make cartels illegal because they restrict competition and lead to higher prices and less choice for consumers. However, there are some exceptions under specific circumstances, such as when regulations allow for collaboration in particular industries.