Homework: Managerial Economics
Text book-Baye, M. R., & Prince, J. T. (2017). Managerial economics and business strategy (9th ed.). McGraw-Hill Education. ISBN 978-1-259-29061-9
i. Chapter 9: Basic Oligopoly Models
ii. Chapter 10: Game Theory: Inside Oligopoly
The opening statement on the website of the Organization of Petroleum Exporting Countries (OPEC) says its members seek " ... to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry." To achieve these goals, OPEC attempts to coordinate and unify petroleum policies by raising or lowering its members' collective oil production. However, increased production by the United States, Russia, Oman, Mexico, Norway, and other non-OPEC countries has placed downward pressure on the price of crude oil.
Explain:
i. To achieve these goals of stable and fair oil prices, what must OPEC do to maintain the price of oil at its desired level?
ii. How easy it is for OPEC to achieve this goal?
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.