The diagram below illustrates the change in market equilibrium in the global oil market due to a demand shock, with the demandcurve shifting from Demand to Demand'. Supply of oil is provided by OPEC countries, as part of a cartel agreement, and othercountries outside the cartel,P.P.DemandDemandQuantity, QQ Q.Which of the following statements is/are correct?globala) If more countries joined OPEC, and reduced the quantity of oil that they produced as a cartel, it is possible thatmarket oil price could stay the same depending on other market dynamics.b) The price of oil in the global market is fixed by the members of the OPEC cartel.c) If there is increased production of oil in a non-OPEC country when demand is at Demand' there would be a reduction in pricefrom P1, ceteris paribus.

A ) As more countries will join the cartel and will reduce the quantity produced that is even lower…

The diagram below illustrates the change in market equilibrium in the global oil market due to a demand shock, with the demand curve shifting from Demand to Demand'. Supply of oil is provided by OPEC countries, as part of a cartel agreement, and other countries outside the cartel.

The diagram below illustrates the change in market equilibrium in the global oil market due to a demand shock, with the demand curve shifting from Demand to Demand'. Supply of oil is provided by OPEC countries, as part of a cartel agreement, and other countries outside the cartel.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 28CTQ: Intellectual property laws are intended to promote innovation, but some economists, such as Milton...

See similar textbooks

Similar questions

how conflicting affecting cartels and like cartels like opec fail to reachto consensus on price and quantity?
Part G H I
20. Using two carefully drawn and labeled diagrams, analyze an input cartel. That is, on the left side of the page, draw a diagram for one of the firms, and on the right side, draw a diagram for the labor market. Indicate the equilibrium wage and employment for the market if the labor market is competitive, (WC , LC), and the corresponding outcome for a firm, (WC, lC). Then, explain how the cartel adjusts the wage and employment.
22: What are some of the Factors Leading to Globalization? 23: What are the Characteristics of a Purely Competitive Market? 24: What are the Characteristics of a Monopolistic Competition Market?
Homework 3 A. Dominant firm model questions Assume a market of a crude oil market. The world demand and the supply equations for OPEC and shale oil producers are as shown below: Qworid,D = 150 – 3P, MCOPEC = 5+ 0.4Qs.OPEC MCSHALE = 35 + 2Qs,SHALE 1. Find the critical price and critical quantity 2. Find the market price 3. Find the market quantity supplied by OPEC and market quantity supplied by Shale 4. Find the profit of OPEC and profit of Shale oil producers
Please answer quickly, I need final answer with short explaination : Assume that demand for a product that is produced at zero marginal cost is reflected in the table below. a) What is the profit-maximizing level of production for a group of oligopolistic firms that operate as a cartel? b) Assume that this market is characterized by a duopoly in which collusive agreements are illegal. What market price and quantity will be associated with a Nash equilibrium?
The graph below shows the demand for Cosmic shampoo. ◻ Suppose there are no fixed costs and marginal cost is a constant $30. a. What are the perfectly competitive price and output? Price: $ Output: b. What are the cartel (monopoly) price and output? Price: $ Output: c. If there are only four firms in the cartel, what are the price and output of each firm, assuming equal shares? Round your answers to 1 decimal place. Price: $ Output: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
mether to produce a low output or a high output. nese output strategies with corresponding profits are depicted in the ayoff matrix to the right. Kuwait's profits are in red and Saudi Arabia's are in blue. Suppose the two countries form a cartel. What is the cooperative equilibrium? Kuwait O A. The cooperative equilibrium is for Saudi Arabia to produce a high output and Kuwait to produce a high output. Low Output High Output O B. A cooperative equilibrium does not exist for this game. $125 $75 Low Output O C. The cooperative equilibrium is for Saudi Arabia to produce a low output and Kuwait to produce a high output. $8 $13 Saudi Arabia O D. The cooperative equilibrium is for Saudi Arabia to produce a high output and Kuwait to produce a low output. $98 $70 E. The cooperative equilibrium is for Saudi Arabia to broduce a low output and Kuwait to produce a low output. High Output What is the Nash equilibrium for this game? O A. The Nash equilibrium is for Saudi Arabia to produce a high…
a. What evidence is there to indicate that the UK supermarket business is an oligopoly? What further evidence might you need to be more certain that this is the case? b. Comment on the suggestion that Tesco’s position as price leader is being undermined. c. Other than price cutting, analyse the ways in which the Big Four might restrict the growth of new entrants such as Aldi and Lidl. d. Discuss the extent to which the stores wars described above is in the best interests of the UK consumers. The supermarket business in the UK is dominated by the so-called ‘Big Four’. Their market shares in March 2014 are shown below:Tesco .................. 28%Asda ................... 19%Sainsburys .......... 18%Morrisons ........... 11%Other established supermarkets, notably the Co-operative and Waitrose, are way behind with market shares of 5–6%. Over the year to March 2014, Tesco and Morrisons have lost out whilst the other two have hung on to retain or marginally increase their market share.…
ASAP!!
I'm not sure if I am answering this correctly.
What are the main factors that made Xiaomi a leading smartphone company in China and What do competitive reaction do you expect from Samsung and Apple globally?