OPEC Can Be Considered as a "Cartel" Which Is a Group

question 2

Multiple Choice

OPEC can be considered as a "cartel" which is a group of separate companies that collectively:

• A)sets prices, controls output, or takes other actions to maximize profits.
• B)dictates how other countries should use their products.
• C)produces more products in order to beat the competition.
• D)conducts activities that are considered illegal in United States.
• E)works on forming a union against management of other companies.

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Definitions:

Government Action

Measures and policies implemented by a government to influence the economy or address social issues.

Monopolies

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, leading to limited competition.

MC Equals MR

In economics, the condition where a firm's marginal cost equals its marginal revenue is considered the optimal point for profit maximization.

Horizontal Demand

Horizontal Demand describes a market condition where the demand for a product is exceedingly elastic, indicating that a slight change in price can lead to a significant change in the quantity demanded.