Table: Market for Oil Suppose That Oil Is Produced by 10

question 30

Multiple Choice

Table: Market for Oil Suppose that oil is produced by 10 countries, each of which produces 10 million barrels of oil a day (MBD) for a total 100 MBD. The world price of oil at this quantity is $36 per barrel so each country earns $360 million a day. Reference: Ref 15-2 (Table: Market for Oil) Refer to the table. Suppose that these countries form a cartel and each country produces 8 MBD. If one of the cartel members cheats by secretly pushing its production back to 10 MBD rather than 8, total revenue for the non-cheating countries would:

• A) decrease from $400 million to $380 million a day.
• B) decrease from $360 million to $288 million a day.
• C) increase from $400 million to $500 million a day.
• D) remain unchanged at $380 million a day.

---

Definitions:

Bipedally

Walking on two feet as the primary form of locomotion, characteristic of humans and their ancestors.

Hominoids

A taxonomic group of primates that includes apes and humans, characterized by higher intelligence and more complex social structures compared to other primates.

Anthropoids

The suborder of primates that includes New World monkeys, Old World monkeys, and apes (including humans).

Taxonomically

Pertaining to taxonomy, the science of classification, especially in biology for the classification of organisms into a systematic framework such as kingdoms, phyla, and species based on shared characteristics and genetic heritage.