Which of the following will weaken OPEC's effect on the world price of oil? (i) Member countries abide by the regulatory policy set forth under the original collusive agreement.
(ii) Member countries increase their own production.
(iii) Member countries set their level of production in order to capture a larger share of the total profit available.
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i) only

Question

Which of the following will weaken OPEC's effect on the world price of oil? (i)	Member countries abide by the regulatory policy set forth under the original collusive agreement.
(ii)	Member countries increase their own production.
(iii)	Member countries set their level of production in order to capture a larger share of the total profit available.
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i) only

Quizplus · Accepted Answer

If member countries increase their own production or set their production levels to capture a larger share of the total profit, it would lead to an increase in supply, which could lower the world price of oil, thereby weakening OPEC's effect.

Which of the Following Will Weaken OPEC's Effect on the World