According to "Oil Cartel Achieves Cuts in Output, Halting Price Slide," OPEC wants to behave like a monopoly, choosing a rate of industry output that maximizes total industry profit. The challenges for all cartels, OPEC in particular, include all of the following except
A) Preventing some members from decreasing production.
B) Allocating market share.
C) Coordination.
D) Replicating monopoly outcomes.

Question

Quizplus · Accepted Answer

The article states that OPEC wants to behave like a monopoly and maximize industry profit by choosing a rate of industry output. The challenges for all cartels, including OPEC, are allocating market share, coordinating their efforts, and replicating monopoly outcomes. The article does not mention preventing members from decreasing production as a challenge for OPEC.