If every member of OPEC produces beyond quota, then cartel members:
A) earn monopoly profits.
B) fail to earn monopoly profits.
C) cannot profit.
D) may or may not earn monopoly profits.

Question

Quizplus · Accepted Answer

If every member of OPEC produces beyond quota, then excess supply in the market will lead to lower prices. This will reduce the cartel's ability to earn monopoly profits as members are no longer cooperating to restrict supply and raise prices. In such a scenario, OPEC members would fail to earn monopoly profits.

If Every Member of OPEC Produces Beyond Quota, Then Cartel