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Monopoly, an oligopoly,and a cartel.

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You have been contracted by an economic consulting firm to determine the economic structure and possible future actions of OPEC, the Organization of Petroleum Exporting Countries.

Using the Library, the Internet, and your course materials, find websites that offer this information and answer the following questions (Perloff, 2007).

Explain the difference between a monopoly and an oligopoly,and a cartel.
Provide an example of a monopoly, an oligopoly, and a cartel.
Discuss the welfare effects of monopolies and oligopolies.
Explain the game theory.
Using your own words, discuss the economic purpose of OPEC. What has happened to oil prices over the past five years?
Based on your answers to the above questions, synthesize the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year.
Summarize your research findings in 2 to 4 pages.

Reference

Perloff, J. M. (2007). Microeconomics (4th ed.). New York: Pearson Addison Wesley.

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Solution Preview

You have been contracted by an economic consulting firm to determine the economic structure and possible future actions of OPEC, the Organization of Petroleum Exporting Countries.

Using the Library, the Internet, and your course materials, find websites that offer this information and answer the following questions (Perloff, 2007).

Explain the difference between a monopoly and an oligopoly,and a cartel.
Provide an example of a monopoly, an oligopoly, and a cartel.
Discuss the welfare effects of monopolies and oligopolies.
Explain the game theory.
Using your own words, discuss the economic purpose of OPEC. What has happened to oil prices over the past five years?
Based on your answers to the above questions, synthesize the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year.
Summarize your research findings in 2 to 4 pages.

Explain the difference between a monopoly and an oligopoly,and a cartel.

As per Econlib, "Monopoly is an enterprise that is the only seller of a good or service. In the absence of government intervention, a monopoly is free to set any price it chooses and will usually set the price that yields the largest possible profit."

As per tutor2u.net, An oligopoly is a market dominated by a few large suppliers. The degree of market concentration is very high (i.e. a large % of the market is taken up by the leading firms). Firms within an oligopoly produce branded products (advertising and marketing is an important feature of competition within such markets) and there are also barriers to entry.

As per wikipedia, A cartel is a formal (explicit) ...

Solution Summary

Response discusses the monopoly, an oligopoly,and a cartel.

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