WAEC Commerce 2020 Theory — Question 2

Model answer

(a) Functions of cartel: Cartel seeks to regulate the output of members; It also seeks to segment market among its members; It may influence price of output; At times, it creates artificial scarcity. (b) Advantages of public corporation: It provides essential services at a cheap price; There is continuity; It provides job opportunity to the citizens. Disadvantages of public corporation: Inefficiency and ineffectiveness; Waste of government resources; Favouritism is the order of the day in public corporation.