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Cartels

Unit 7: Product Pricing Theories and PracticesTopic 5 of 6
Browse the Microeconomics for Business syllabus

Microeconomics for Business

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What the syllabus expects

  • Concept and types
  • Pricing in a joint-profit-maximizing cartel

Cartels

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 7: Product Pricing Theories and Practices

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

  • Explain the scope and key elements of cartels.
  • Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

  • Concept and types
  • Pricing in a joint-profit-maximizing cartel

Detailed Microsyllabus

  1. Cartel foundations

    1. Meaning and purpose of coordination among producers.
    2. Types of cartel arrangements.
    3. Differences between cooperation and independent competition.

  2. Joint-profit maximization

    1. Combine market demand and member costs.
    2. Determine joint output and its allocation.
    3. Discuss incentives to deviate and difficulties maintaining agreement.

Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.