OPEC periodically meets to agree to restrict the cartel's oil output, and yet almost every member of OPEC produces more than its own output quota.This suggests that OPEC has

Question

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The fact that OPEC members produce more than their own output quota indicates that they are not cooperating with each other to restrict the cartel's oil output. Instead, each member is seeking to maximize its own individual profits, even if it means violating the agreed-upon output levels. This is a classic example of a noncooperative equilibrium, where each member acts in its own self-interest rather than cooperating for the greater good of the group.

OPEC Periodically Meets to Agree to Restrict the Cartel's Oil