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Which market induces trusts and cartels?
Perfect competition
Monopoly
Oligopoly
None of them
- Perfect Competition (Option 1):
- Many firms, identical products.
- No single firm can influence the market price.
- Trusts and cartels are not typically formed here.
- Monopoly (Option 2):
- Single firm dominates the market.
- No competition to form trusts or cartels.
- Firm already controls the market.
- Oligopoly (Option 3):
- Few firms dominate the market.
- High potential for collusion and formation of trusts or cartels.
- Firms may cooperate to set prices or output.
- None of them (Option 4):
- Implies none induce trusts or cartels.
- Not applicable in markets like oligopoly.
- Correct Answer: Oligopoly (Option 3)
By: santosh ProfileResourcesReport error
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