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In case of any transaction between different parties, it is very important to have an understanding between the two parties. This becomes all the more essential, when those two production firms, offer the same variety of goods to its consumers. In this regard, they would always want to maintain a level of profitable margin, so that none of the competitors in the market lose out in business.
Keeping this in mind, in present times, any company or set of companies, when producing a common good for public consumption, forms a cartel. By forming such organisations, they can easily share the profits and make sure that the customers get equal quantity of the product from each of the producers.
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What is the primary concept associated?
A cartel is primarily a formal agreement between competing firms who are producing the same product, to control the prices associated with it and the entry of other firms that are associated with the production of the same good.
Hence, by means of such agreements, they can easily control the whole production and transaction process, thereby making sure that the organisation remains a secured one. A further detail can be found in Cartels Assignment Help, that would also help a student in getting a new insight into this subject.
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