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The Oil Industry Is Dominated by a Cartel Known as OPEC

Question 231

Multiple Choice

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.

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