OPEC Is an Example of A

question 29

Multiple Choice

OPEC is an example of a:

• A)cartel
• B)collective
• C)international free trade agreement
• D)coalition

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Definitions:

Profit-Maximizing Rule

A principle that states a firm reaches its highest profit when its marginal cost equals its marginal revenue.

Marginal Revenue

The revenue increase from the sale of one more unit of a product or service.

Marginal Cost

is the increase in total cost that arises from producing one additional unit of a product or service.

Total Fixed Cost

The total fixed cost refers to the sum of all costs that do not change with the level of output produced by a company or during a specific period.