When OPEC raises prices, it encourages new firms to enter the industry and new technologies to be developed that help to conserve oil.

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When OPEC raises prices, they make it more profitable for new firms to enter the industry as well as encourage the development of new technologies that help to conserve oil. This increased competition and innovation can ultimately lead to a decrease in prices and a more efficient use of resources.

When OPEC Raises Prices, It Encourages New Firms to Enter