Question

a system of commerce where several companies work together to control prices and limit competition is called a ______.
○ cartel
○ monopoly
○ trust
○ strike

Explanation:

To solve this, we analyze each option:

• Cartel: A group of companies (usually in the same industry) that collude to control prices, output, or market share, reducing competition. This matches the description.
• Monopoly: Exists when a single company dominates the market, not multiple working together. Eliminate.
• Trust: A legal arrangement or a large business combination (often involving a monopoly - like structure, but the term "trust" is more about ownership consolidation, not the specific "several companies working together to control prices" as directly as cartel). Eliminate.
• Strike: A work stoppage by employees, not related to companies controlling prices. Eliminate.

Answer:

A. cartel