Author Question: Since 1972, the world price of oil has been largely determined by OPEC, which controls about 75 ... (Read 130 times)

Collmarie

  • Hero Member
  • *****
  • Posts: 569
Since 1972, the world price of oil has been largely determined by OPEC, which controls about 75 percent of the world's proven oil reserves. Since 1972 the price of oil has
 
  A) fluctuated. OPEC's situation is an example of a prisoner's dilemma.
  B) risen slowly, but steadily. Members of OPEC fear that if they raise the price of oil too quickly this will lead oil-buying nations to accuse OPEC of price gouging, which is illegal under international law.
  C) been tied by OPEC to the rate of inflation in the United States. If, for example, the rate of inflation is 5 percent in one year, OPEC will raise the price of oil by 5 percent the next year.
  D) steadily fallen through the 1970s, then risen continually in the years since then. OPEC's actions are an example of implicit collusion.

Question 2

Refer to Figure 12-11. Suppose the prevailing price is 20 and the firm is currently producing 1,350 units. In the long-run equilibrium, the firm represented in the diagram
 
  A) will continue to produce the same quantity. B) will reduce its output to 750 units.
  C) will reduce its output to 1,100 units. D) will cease to exist.


milbourne11

  • Sr. Member
  • ****
  • Posts: 322
Answer to Question 1

A

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

For a complete list of videos, visit our video library