Which term refers to industry agreements to fix prices and limit competition?

• A. Trusts
• B. Monopolies
• C. Cartels
• D. Mergers

Answer: (C)

Cartel. This term refers to formal agreements among competing firms to fix prices, limit production, or divide markets in order to reduce or eliminate competition. In the late 1800s and early 1900s, many industries tried this kind of cooperation to stabilize profits amid rapid industrial growth. While a trust or a monopoly involves control by larger combined entities or a single seller, they don’t inherently describe explicit price-fixing bargains among several independent firms. Mergers involve combining companies into one entity, not coordinating behavior among rivals. So the best fit for industry agreements to fix prices and limit competition is a cartel.