- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 8. Oligopoly
CFA Practice Question
The Organization of Petroleum Exporting Countries, OPEC, attempts to set world oil prices by limiting the production of member nations. This is an example of a ______.
B. duopoly
C. cartel
D. monopsony
A. monopoly
B. duopoly
C. cartel
D. monopsony
Correct Answer: C
OPEC is the classic example of a cartel. Members attempt to coordinate their actions to act as if they were a monopoly.
User Contributed Comments 5
| User | Comment |
|---|---|
| StanleyMo | Gosh, they r causing the oil price per barrel more than 120USD now!! pity us please. |
| magicchip | hmmm..develop alternative energy sources and let them drink their oil. |
| ilgibe | It wasn't Opec. It was a demand driven increase... and the first buyer was China, at least till the beginning of Olympic games. |
| EMerkert | Federal Reserve...also a cartel |
| azramirza | The reading says forming cartel is illegal...But OPEC is not..so how can Federal Reserve be a cartel? |