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) cost of production differences of the cartel members rise
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 tend to decrease as cost of production differences of the cartel members rise. When production costs rise, some OPEC nations may be incentivized to produce and sell more oil than their agreed quota, leading to oversupply and lower prices. This decreases the overall effectiveness of the cartel in controlling prices and output.

The Ability of OPEC Nations to Operate as a Successful