The Organization of Petroleum Exporting Countries (OPEC)is Considered a Cartel

question 163

Multiple Choice

The Organization of Petroleum Exporting Countries (OPEC) is considered a cartel by economists because the

• A) firms agree to restrict output in order to increase prices and profits.
• B) firms are controlled by the government.
• C) firms in the cartel sell a homogenous (undifferentiated product).
• D) firms sell a product with few substitutes.
• E) organization is international and thus not subject to antitrust laws.