If a Few Oil-Producing Countries in the Middle East Decide

question 171

Multiple Choice

If a few oil-producing countries in the Middle East decide to jointly limit the production of oil,

• A) they are forming a cartel.
• B) they would like the price of oil to be the same as if the market were perfectly competitive.
• C) game theory does not apply to their actions because they are nations, not firms.
• D) they will try to operate as a large, monopolistically competitive firm.
• E) they will agree to lower the price of oil in order to increase their profits.

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Definitions:

Rotation

The act or process of turning around a center or an axis, a fundamental movement in biomechanics.

Gomphosis

A form of fibrous connection that secures a tooth within its jaw socket.

Syndesmosis

A type of fibrous joint in which bones are joined together by long collagen fibers, allowing for limited movement.

Cartilaginous Joint

A type of joint in the body where the bones are joined together by cartilage, allowing for limited movement.