Prior to the formation of OPEC, individual oil producing nations
A) operated like sellers in a competitive market.
B) behaved like individual sellers in a monopoly market.
C) had considerable control over the price of oil.
D) operated like buyers in a competitive market.

Question

Quizplus · Accepted Answer

Prior to the formation of OPEC, individual oil producing nations operated like sellers in a competitive market. This means that they had little control over the price of oil and behaved as price takers, adjusting their production levels to market demand and the prevailing market price.

Prior to the Formation of OPEC, Individual Oil Producing Nations