The Organization of Petroleum Exporting Countries (OPEC) controls about 75 percent of the world's proven oil reserves. Economists refer to OPEC as a cartel because
A) it is a group of firms that collude to restrict output to increase prices and profits.
B) OPEC is a monopoly, but it is located outside of the boundaries of any one country. This is the definition of a cartel.
C) this is the term economists use to describe an oligopoly that sells a standardized product, such as oil, rather than a differentiated product, such as automobiles.
D) this is the term used for an oligopoly that is controlled by national governments rather than private firms.
A
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The study of how a particular firm might choose to maximize its profits would fall into what type of analysis?
A) macroeconomics B) microeconomics C) labor economics D) aggregate economics
Which of the following is characteristic of a labor market that is a monopsony?
A. The type of labor available is relatively mobile from one industry to another B. The supply curve for labor lies above the marginal resource cost curve of the firm C. The wage rate the firm must pay varies directly with the number of workers it employs D. The firm's employment is a small portion of the total employment of that type of labor