The ability of OPEC nations to operate as a successful cartel tend to decrease as
A) the number of members of the cartel decline.
B) the cost of production differences among the cartel members rises.
C) the demand for oil rises in the world market.
D) the availability of substitutes for OPEC oil falls.

Question

Quizplus · Accepted Answer

The ability of OPEC nations to operate as a successful cartel tends to decrease as the cost of production differences among the cartel members rises. This is because significant differences in production costs can lead to disagreements on production quotas and pricing, making it harder for the cartel to maintain discipline and coordinate actions effectively.

The Ability of OPEC Nations to Operate as a Successful