The oil industry is dominated by a cartel known as OPEC, and the cocaine industry is dominated by the Columbian cocaine cartel. If these cartels are being successful,
A) the price of oil is higher than if the cartel did not exist, but the price of cocaine is lower.
B) the price of cocaine is higher than if the cartel did not exist, but the price of oil is lower.
C) both goods have higher prices than if the cartels did not exist, and both have lower levels of total output.
D) both goods have higher prices than if the cartels did not exist, and both also have higher levels of total output.
Correct Answer:
Verified
Q152: Which of the following is the best
Q227: Which of the following would increase the
Q228: To increase joint profits, a cartel will
Q229: If a local government began licensing funeral
Q230: (I) Oligopolistic firms have an incentive to
Q233: A major problem with regulatory agencies is
Q234: In general, an organization of sellers designed
Q235: Laws designed to prevent monopoly and promote
Q254: Which of the following is true for
Q258: Licensing is a process in which a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents