OPEC was able to function as an extremely successful cartel in the last half of the 1970s because
A) it was an association of governments rather than of private individuals.
B) it was able to separate OPEC oil from non-OPEC oil and to engage in price discrimination.
C) the increasing scarcity of oil produced an upward-sloping marginal revenue curve.
D) the widespread expectation of much higher future prices discouraged current production.
E) wars in the Middle East raised the marginal cost of producing oil.
D
You might also like to view...
Income inequality has risen in recent years due to a rise in labor's share of national income as a result of globalization
a. True b. False Indicate whether the statement is true or false
Which of the following has resulted from the rise in the participation of women in the labor force?
a. More men lost jobs in the long run b. Youth crime increased significantly c. Households produced less for themselves and demanded more from the market d. More families moved to rural areas
Economist B believes that the economy can get stuck in a recessionary gap. This economist most likely believes that
A) wages and prices are flexible. B) wages and prices are inflexible downward. C) government may need to enact contractionary fiscal policy to move the economy out of a recessionary gap. D) the economy is self-regulating. E) none of the above
Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. This example illustrates:
A. distorted priorities. B. opportunity costs. C. increasing opportunity costs. D. productive efficiency.