LEARN: PRICE COLLUSION

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Because I’m currently taking my Economics Management Course, I stumbled upon this term – which I think is very relevant in everyday situations (gas, telecommunications). So what is it really?

Price Collusion is prohibited by law. It is a strategy slash treachery that firms practice where they keep the price of a product at a price higher than the normal or average price with the goal of receiving larger profits or cornering the market. This is done by a group of firms.

**Cartel — is the group of firms who are involved in Price Collusion.

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