JAMB Commerce 2019 Objective — Question 5
Question 5 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2019 Objective paper, with the correct answer and a full explanation.
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One major disadvantage of a cartel is that it
- A. maximizes productive efficiency
- B. brings the merging firms under control
- C. maximizes profits from operation
- D. eliminates competition and wasteCorrect
Explanation
A cartel leads to control of prices, control of output and minimisation of waste/competition — which reduces beneficial market competition.
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