Multiple Choice
Table: Market for Oil Suppose that oil is produced by 10 countries, each of which produces 10 million barrels of oil a day (MBD) for a total 100 MBD. The world price of oil at this quantity is $36 per barrel so each country earns $360 million a day. 
Reference: Ref 15-2 (Table: Market for Oil) Refer to the table. Suppose that these countries form a cartel and each country produces 8 MBD. If 9 of the cartel members cheat and produce 10 MBD while one country keeps its promise and maintains production at 8 MBD each cheater would earn revenue of:
A) $375 million a day, while the non-cheating country would earn $300 million a day.
B) $375 million a day, while the non-cheating country would earn $360 million a day.
C) $400 million a day, while the non-cheating country would earn $300 million a day.
D) $400 million a day, while the non-cheating country would earn $360 million a day.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: High prices maintained by a cartel usually
Q65: Which of the following statements is TRUE?<br>A)
Q66: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3375/.jpg" alt=" Reference:
Q68: Which of the following statements is TRUE?<br>A)
Q74: Monopolistic competition is similar to that of
Q80: A dominant strategy is a strategy that
Q83: Persuasive advertising:<br>A) is informative.<br>B) is wasteful.<br>C) can
Q141: A market dominated by a small number
Q179: OPEC stands for:<br>A) the Organization of Petroleum,
Q199: A cartel is a group of firms