What is the primary objective of a cartel?

The primary objective of a cartel is to restrict production and raise prices. A cartel is formed when competing firms in an industry collaborate to control production levels and pricing strategies in order to maximize their collective profits. By limiting supply and coordinating prices, cartel members can create artificial scarcity in the market, which allows them to charge higher prices than they would be able to in a competitive environment. This manipulation of the market reduces price competition and can lead to increased profits for the member firms.

Cartels typically focus on a few key goals: stabilizing prices, increasing profitability, and maintaining market control. While improving product quality, reducing competition, or sharing resources might seem relevant in certain contexts, they don't capture the fundamental essence of a cartel's objective, which centers on limiting output and increasing prices to enhance the profitability of its members.