The Cartel of Oil-Producing Nations (OPEC) Once Controlled About 80

question 11

Multiple Choice

The cartel of oil-producing nations (OPEC) once controlled about 80% of the world petroleum market, but OPEC's market share has declined to about half of its former level. This outcome is a good example of how firms may have:

• A) relatively high short-run monopoly power that strengthens in the long run.
• B) relatively high short-run monopoly power that declines in the long run.
• C) relatively low short-run monopoly power that strengthens in the long run.
• D) relatively low short-run monopoly power that declines in the long run.

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Definitions:

Northern Hemisphere

The half of Earth that is north of the equator, covering continents including North America, Europe, and most of Asia and Africa.

Southern Hemisphere

The half of Earth that lies south of the equator.

Rainshadow

A dry area on the leeward side of a mountainous area, where precipitation is significantly reduced due to the blocking of moist air and precipitation by the mountains.

Subtropics

Regions of the Earth immediately adjacent to the tropics, characterized by hot, often humid summers and mild to warm winters.