This lecture, PowerPoint slides, and movie provide a relatively non-technical introduction to cartels. After describing the characteristics of cartels predicted by economic theory, the instructor shows a movie of the "secret" meetings of the lysine cartel. This movie demonstrates that an actual...

Capacity constraints on production have major effects on a standard monopoly, a monopoly that price discriminates between two submarkets, and a monopoly that sells in two submarkets and faces a price control in only one.