What is a cartel?

[tricky12321]

****ing bitch bakeries

taking advantage of the poor town folk

[MyMrwrestling]

nice song

[unfad1ng]

always with the town of 10 residents

[DefenceAlliance]

I'll start a cartel with some people, but I hope the don't mine when I undercut them and sell to other customers at my own prices :)

[Denon333dash888]

@DefenceAlliance Of course you'd hope that you won't, since businesses ar always looking to their own benefits only.

[jacobtober]

you are confusing revenue with profits. when, in your example, the two bakeries dropped production (lowering costs, assuming certain variables) and raised prices, they increased their profits. however, their revenue remained constant at $15.

revenue = price x quantity

profits = revenue - costs

[Derek0783]

correct. They earned the same revenue. But since it costs less to make less bread, the costs go down as revenue stays the same. The money they saved is on costs. They get to put more money in their pockets at the end of the day because they were able to spend less on production/costs. Profits rise as costs drop...revenue stays the same since they are charging more for less production.

[zeusvalentine]

you just described the housing sector!

[jusahah]

lol might be :)