Oligopoly
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Title: Oligopoly

Essay Details:

Subject: Business
Author: Thomas S
Date: August 13, 2016
Level: University
Grade: B
Length: 3 / 872

Essay text:

If OPEC and other oil exporters did not compete, they could ensure much higher prices for prices for everyone. Output quotas of its members produced staggering price increases (from $1.10 to $11.50 per barrel in the early 1970's, and up to $34.00 in the late 1970's: an increase of 3400% in ten years). The relative success of OPEC can be attributed to the following advantages it has enjoyed relative to other cartels: 1. The low price elasticity of oil demand implies that moderate output restrictions increases price in short run - a favorable environment for a cartel. In 1973 OPEC output contributed two-thirds of the total world oil production...

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