The Organization of Petroleum Exporting Countries (OPEC)is Considered a Cartel

Multiple Choice

The Organization of Petroleum Exporting Countries (OPEC) is considered a cartel by economists because the

A) firms agree to restrict output in order to increase prices and profits.
B) firms are controlled by the government.
C) firms in the cartel sell a homogenous (undifferentiated product) .
D) firms sell a product with few substitutes.
E) organization is international and thus not subject to antitrust laws.