The basic strategy of the OPEC cartel is to
A)assure that developed nations get as much crude as oil as they need.
B)give priority to developing nations who want to use oil to boost industrial progress.
C)produce all their proven reserves as quickly as possible to keep prices and demand high.
D)control production and keep the market price as high as possible without discouraging major buyers.

Question

Quizplus · Accepted Answer

The basic strategy of the OPEC cartel is to control production and keep the market price as high as possible without discouraging major buyers. By limiting production, OPEC can keep prices high and maintain a strong bargaining position with buyers. However, if prices get too high, it could encourage buyers to seek out alternative energy sources, which could ultimately hurt OPEC's profits. Therefore, OPEC seeks to maintain a delicate balance between keeping prices high enough to maximize profits while not making them so high that buyers look elsewhere.

The Basic Strategy of the OPEC Cartel Is to