Was the U.S. government able to control the world petroleum ...

[nramada]

Was the U.S. government able to control the world petroleum prices? Support your choice with suitable reasons.

Question 2

Under perfect competition, existing firms leave the market in the long run if the price falls below total fixed cost.
 a. True
  b. False
  Indicate whether the statement is true or false

[joshraies]

Answer to Question 1

No, the U.S. government had failed to control the petroleum prices in the world market. This was mainly on account of the country's continued dependence on oil imports. Even when the country became self sufficient in petroleum, higher world prices induced the U.S. producers to export oil which drove up the domestic petroleum prices once again.

Answer to Question 2

False