Price fixing involves firms colluding to increase prices and restrict competition. Cartels aim to attain higher profits by controlling prices and output, but such agreements are often illegal. International agreements like OPEC attempt to act like monopolies but are not legally enforceable.
Price fixing involves a group of firms colluding to increase prices and restrict competition against each other. This can lead to higher profits for the firms involved. However, cartels that engage in price fixing are generally illegal because they aim to raise prices and limit output, which is anti-competitive.
Cartels are agreements among competing firms to collude in order to attain higher profits by controlling aspects like price fixing and total industry output. These agreements are common in oligopolistic industries where there are few sellers and homogeneous products.
While some international agreements, like those of OPEC, attempt to act like monopolies by controlling output and prices, these arrangements are not legally enforceable and can fall into a gray area of international law.
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