It is a form of market in which the existing few firms form a mutual agreement to avoid competition. They form a cartel and fix the output quotas and the market price. The leading firm in the cartel is the price leader. All of the firms in the cartel accept the price as fixed by the price leader.





It is a form of market in which there are a few firms and they are independent of the rival firms in the market. They can increase market share through competition in the market.





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