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? |