Which of the following represent problems encountered by the Organization for Petroleum Exporting Countries (OPEC) oil cartel?
a. There has been considerable cheating by OPEC members on their quantity allocations.
b. The United States has accused the OPEC for price fixing and has partially banned oil cartels.
c. World demand for oil has declined by approximately 1/3 since the mid-1970's, making it extremely difficult for OPEC to maintain satisfactory prices and revenues for its members.
d. The high production costs incurred by all the OPEC members prompts them to break the cartel and charge a high price in the international market.
a
You might also like to view...
Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $12, the firm
A) incurs an economic loss, but will not shut down. B) will not shut down in the short run, but will leave the industry in the long run. C) will shut down. D) is breaking even.
Refer to Table 9-12. Which country has an absolute advantage in producing belts?
A) Estonia B) Morocco C) both countries D) neither country
An increase in the supply of dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency. B) appreciation of the U.S. dollar and appreciation of the foreign currency. C) depreciation of the U.S. dollar and depreciation of the foreign currency. D) depreciation of the U.S. dollar and appreciation of the foreign currency.
Which of the following is most likely to be a fixed cost for any firm?
a. the monthly electric bill b. sales taxes c. shipping and postage costs d. rent on office space e. charitable donations