Each Member of OPEC Can Increase Its Income by Selling

question 163

Multiple Choice

Each member of OPEC can increase its income by selling more oil than its output quota because

• A)by selling more at OPEC's cartel price, a member will automatically earn more income.
• B)each member's demand is more elastic than the total demand for oil.
• C)the demand for oil is inelastic so total revenue increases.
• D)the demand for oil is perfectly elastic.

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Definitions:

Discontinuous

Refers to a function or process that exhibits breaks, jumps, or gaps in its domain or range.

Integer Linear Optimization Models

Mathematical models used in operations research that seek to maximize or minimize a linear objective function subject to a set of linear constraints and integer variables.

Nonlinear Optimization Models

Mathematical models dealing with optimization problems where the objective function or any of the constraints are nonlinear.

Integer

A whole number, positive, negative, or zero, without fractions or decimals.