Solved

The Authors Explain That the International Copper Cartel (CIPEC) Has

Question 114

Multiple Choice

The authors explain that the international copper cartel (CIPEC) has been largely ineffective in raising the price of copper in world markets, and the reason is mainly due to the relatively elastic demand for copper. Suppose the cartel recognized that there are multiple uses for copper, and some of the uses have few substitute products (e.g., copper electrical wire) while others have several close substitutes (e.g., copper water pipes) . To increase profits, the cartel could raise the price of copper in the sub-markets with relatively inelastic demand. What else would the cartel have to do in order to make the cartel's action effective?


A) The cartel would have to seek permission from the U.S. Department of Justice.
B) The cartel would have to get the cooperation of all other copper producers in order to raise the price by some positive amount.
C) The cartel would have to find a way to keep the buyers in the low-price market from reselling the copper to buyers in the high-price market.
D) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents