Respuesta :
In 2007, the u.s. government discovered a long-run formal conspiracy to fix the price of marine hose. This type of activity is known as explicit collusion.
Explicit collusion happens when companies formally decide to work together, usually to maximize their shared interests. A recording of the meeting or a signed contract documenting the terms of the agreement is usually available.
A monopolist can adjust production to maximize profits. Since he has only one producer, the monopoly does not have to worry about competitors lowering prices or increasing production. This shows how monopolies limit production and raise market prices. Usually their goal is to act as a group, like a monopoly, to cut production and raise prices to increase profits.
Explicit agreements lead to the formation of cartels. A cartel is an organization of separate entities working together to increase the profits of their members through a combination of production limits, pricing, and market sharing. By working together, cartels can gain monopoly power.
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