According to "OPEC Agrees to Maintain Its Oil Output Ceiling at 30 Million Barrels per Day," OPEC wants to behave like a monopoly, choosing a rate of industry output that maximizes total industry profit.The challenges for all cartels, OPEC in particular, include all of the following except
A) Preventing some members from decreasing production.
B) Allocating market share.
C) Coordination.
D) Replicating monopoly outcomes.

Question

Quizplus · Accepted Answer

The article specifically states that OPEC wants to act like a monopoly, choosing a rate of industry output that maximizes total industry profit. Therefore, preventing members from decreasing production would not be a challenge for OPEC since it would help maintain the desired output level. The challenges for OPEC, as noted in the article, include allocating market share, coordination, and replicating monopoly outcomes.