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WAEC Commerce 2025 Theory — Question 4

Question 4 of 24 from the West African Examinations Council (WAEC) Commerce 2025 Theory paper, with the correct answer and a full explanation.

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2(a)(i) Differentiate between cartel and consortium.

Model answer

A cartel is a situation where two or more firms come together to regulate the output of members, while a consortium is a situation where two or more firms come together to execute a particular project, with each firm handling what it does best.

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