Periods of success as well as failure


The OPEC Cartel has had periods of success as well as failure. Of the following factors, which does not contribute to success in a cartel?

a. a low price elasticity of demand for oil (inelastic demand).

b. restricted supply of other forms of energy, such as nuclear.

c. together, members of OPEC control a large percentage of known oil reserves.

d. supply of crude oil by non-OPEC producers is very elastic.

e. all of the above factors contribute to cartel success.

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Microeconomics: Periods of success as well as failure
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