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Question:

Read the\u00A0supporting details\u00A0then answer the following question. Which of the following is an example of a cartel formation?

A Two local pharmacies decide to use price fixing in order to force out the chain drug store
Explaination

In order to answer this question correctly, you must either know what a cartel is, or know the meaning of collusive. When one is engaged in collusive practices, it means that he or she is acting illegally in order to commit fraud, or that he or she is conspiring with another individual. A cartel is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production in order to drive other business away. Therefore, the option that is an example of a cartel is: Two local pharmacies decide to use price fixing in order to force out the chain drug store.