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Assuming Identical Cost and Demand Curves, OPEC as a Cartel

Question 3

Multiple Choice

Assuming identical cost and demand curves, OPEC as a cartel will, in comparison to a competitive industry,


A) produce greater output and charge a lower price.
B) produce greater output and charge a higher price.
C) produce less output and charge a higher price.
D) produce less output and charge a lower price.

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