The OPEC oil cartel ?
Correct answer: D. has had a level of success in raising oil prices that other developing countries are unlikely to achieve with other primary commodities
- A. has shown that is easy to achieve cooperation among cartel members
- B. was successful in raising oil prices in the 1970s but was disbanded in the 1980s
- C. has shown greater success in realizing profits during periods of global recession
- D. has had a level of success in raising oil prices that other developing countries are unlikely to achieve with other primary commodities
Explanation
OPEC achieved notable price increases, especially in the 1970s, because oil supply was concentrated among a small group and demand was relatively inelastic. Producers of many other primary commodities are more numerous and fragmented, making comparable cartel success difficult.
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