The Organization of Petroleum Exporting Countries (OPEC)behaves in Many Ways

question 101

Multiple Choice

The Organization of Petroleum Exporting Countries (OPEC) behaves in many ways like an international cartel.If the cartel were to hire a consulting firm to monitor the production rates of member countries,the economic reason for this monitoring is to:

• A) make sure that each member country is producing at an output level at which price equals marginal cost.
• B) make sure all the member countries produce at least their quotas so that there will be no oil shortage.
• C) detect those member countries that are depressing prices by producing more than their assigned quotas.
• D) make sure that the marginal revenue for the last barrel of oil sold by each member country is less than its price.

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Definitions:

Hybrid Breakdown

A postzygotic barrier where offspring of cross-species or cross-strain matings have reduced survival rates or fertility.

Gametic Isolation

A form of prezygotic barrier where the gametes (egg and sperm) of two different species are unable to fuse or meet to form a viable zygote.

Hybrid Sterility

A condition in which offspring from the crossing of two different species or distinct parental lines are incapable of producing fertile offspring.

Temporal Isolation

A form of reproductive isolation where two species breed at different times of day, season, or years, preventing interbreeding.