Natural Resource Cartels Such as OPEC Are Inherently Unstable Because

question 104

True/False

Natural resource cartels such as OPEC are inherently unstable because their members operate with excess capacity and have an incentive to cheat on their output quotas.

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Definitions:

John D. Rockefeller

An American industrialist and philanthropist who was a co-founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust.

Commercialization

The process of bringing new products or services to the market, encompassing production, distribution, marketing, sales, customer support, and other key activities.

Nonprofit Sector

The segment of society that comprises organizations primarily focused on philanthropic goals, community service, or providing noncommercial services.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes.