‏a. What is a cartel? Why is OPEC considered a Cartel

Expert Solution

Rahul Sunny answered 2 years ago

Why is a cartel like OPEC so difficult to maintain? What is the benefit to stay...

Why is a cartel like OPEC so difficult to maintain? What is the benefit to stay in the cartel for the members and what are costs/problems of staying?

OPEC has certainly been the world's most successful cartel. What did OPEC do to prevent the...

OPEC has certainly been the world's most successful cartel. What did OPEC do to prevent the competition of capitals or creative destruction? a. it suppressed innovations in new technologies and kept other producers out of the market b. it managed to keep new technologies and new producers out of the market through monopolistic practices and collusion c. it was unable to develop strategies to stop or slow down either of these competitions d. it got the world court to recognize...

Why would the petroleum producing countries form a cartel (OPEC) to determine the price of their...

Why would the petroleum producing countries form a cartel (OPEC) to determine the price of their product?

OPEC is an example of a cartel. Explain and depict in detail, how the price and...

OPEC is an example of a cartel. Explain and depict in detail, how the price and quantities are determined in the cartel market for cartel members and other companies! Denote clearly all curves, prices and quantities!

Consider the world oil market, in which a cartel (OPEC) and a competitive fringe (rest of...

Consider the world oil market, in which a cartel (OPEC) and a competitive fringe (rest of the world) are operating. Suppose that global oil demand and the supply of the competitive fringe are given by the following functions: Qw=80-P Qf=-60+p suppose the cartel is comprised of 2 countries, let each countries marginal cost function be as follows: MC1=5+2Q2 MC2=5+2Q2 Derive the marginal cost function (?C?) of the cartel. (2 pt) Calculate the price at which the competitive fringe would be...

Since the early 1970s, the world oil market has been buffeted by the OPEC cartel and...

Since the early 1970s, the world oil market has been buffeted by the OPEC cartel and by political turmoil in the Persian Gulf. In 1974, by collectively restraining output, OPEC (the Organization of Petroleum Exporting Countries) pushed world oil prices well above what they would have been in a competitive market. OPEC could do this because it accounted for much of world oil production. During 1979-1980, oil prices shot up again, as the Iranian revolution and the outbreak of the...

Suppose that OPEC cartel imposes an embargo on oil exports to the US, which causes global...

Suppose that OPEC cartel imposes an embargo on oil exports to the US, which causes global oil prices to double that forces the domestic gas prices to rise to $5 per gallon. Thus, to make gasoline more affordable for American consumers the US Government decides to impose $3 price ceiling on it at the retail level. What would be the economic consequences of such government intervention in the market mechanism? What alternative rationing mechanisms will the market have to resort...

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