In order to make oil profits as large as possible, OPEC meets to set oil production quotas for its members. OPEC is best classified as a:
A) monopoly.
B) cartel.
C) kinked demand industry.
D) price-leadership industry.

Question

Quizplus · Accepted Answer

OPEC operates as a cartel, where member countries work together to set production quotas in order to control prices and maximize profits. This is a characteristic of a cartel, which is a group of producers who collude to restrict output and increase prices, similar to a monopoly but involving multiple firms or countries.

In Order to Make Oil Profits as Large as Possible