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Many retail stores offer to match or beat the price offered by a rival store. Explain...

Many retail stores offer to match or beat the price offered by a rival store. Explain why firms that belong to a cartel might makes this offer.

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Answer #1

Cartel:A combination of independent business organizations formed to regulate production, pricing, and marketing of goods by the members.

Mostly a Retail organization is based on day to day business and decisions are taken by customers are at the earliest and make thing done in the earliest

When we talk about the formats we have 8 different formats available for retail business and when we talk about a hyper market in retail many retail organization offer the best price to its customers the only reason is Competition the retail organization are very big in nature they reduce the profit percentage on individual product and provide huge variety in which they worky out with the profit and when it comes for cartel they make thier own production andprovide the same to its customers then definately the company can generate maximum profit

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