OPEC is able to raise the price of its product by
A)tying.
B)setting production levels for each of its members.
C)increasing the supply of oil above the competitive level.
D)imposing resale price maintenance agreements on members.

Question

Quizplus · Accepted Answer

OPEC (Organization of Petroleum Exporting Countries) is able to raise the price of its product by setting production levels for each of its members. By limiting the production, the overall supply of oil decreases, which leads to an increase in price due to higher demand. OPEC has successfully used this strategy in the past to control the global oil market.

OPEC Is Able to Raise the Price of Its Product