Iran called on OPEC in November 2008 to cut production by a further 1 million to 1.5 million barrels per day when it meets in Cairo later this month. Why would OPEC, a cartel, restrict production?
A) to decrease demand
B) to increase supply
C) to decrease quantity supplied
D) to increase profits

Question

Quizplus · Accepted Answer

OPEC, as a cartel, restricts production to reduce supply, which can lead to higher oil prices and thus increase profits for its member countries.

Iran Called on OPEC in November 2008 to Cut Production