15 Feb The Organization of the Petroleum Exporting Countries (OPEC) is often referred to as a cartel, which is a group of firms that collude by agreeing to limits on the amount of output
The Organization of the Petroleum Exporting Countries (OPEC) is often referred to as a cartel, which is a group of firms that collude by agreeing to limits on the amount of output they produce to increase prices and profits. OPEC members decide on production quotas for each country that will maintain a price for oil that will maximize the members’ profits. Why is it difficult to sustain an agreement to maintain production quotas for each member when the quotas would maximize the members’ profits?
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