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OPEC and Cartels
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| Beat_Chemist |
| I'm trying to write a paper on OPEC and discuss what it is, what is does, how it compares to similiar structures, and what the outlook of the organization is. I want to compare OPEC wiht that of other cartels which are in place today, and cartels that have failed. I would then compare those cartels with OPEC to determine what I feel the future holds for OPEC. However I have a hard time figuring out what all cartels are out there. So far all I know of are the Diamond, Drugs, and OPEC. can someone savvy on this topic help me out? |
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| occrider |
| What do you mean the economics behind an oligopoly? |
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| pooley |
| Will turn into a political dicussion no? |
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| Orbax |
| if you get all 4 cartels you get free coke and 200million dollars every time you pass the DEA |
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| Orbax |
| get it...oligopoly...mono...screw it. |
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| Dmatrox |
From what a remember, cartels are illegal, but an international cartel especially OPEC is allowed and im not really sure why. Cartels are supposed to be illegal because of its non-competitive nature of business where the cartel can control prices and output. Cartels can fixed certain variables and agree with other members not to compete with each other. As you can see, no competition is a problem and therefore is illegal.
There are drug cartels that are illegal. For example, a ring of dealers will negotiate which areas they distribute to, how much they distribute, and the prices so they sorta dont have to worry about the competition. |
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| ::TranceVanDyk:: |
OPEC raises prices or cuts production in order to make more profits. look at the GPA's / per capita's of suadi arabia, qutar, and that area and see how they are some of the highest in the world.
research on the 1970's gas shortage in the US, and now, and try to see if OPEC's business tactics have been an influence in the reason why a huge percentage of europeans use no car. there are other factors, but check if that is one of them. |
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| torontotrance |
| but remember people...this is the only major export for some of the OPEC countries...the entire country's health depends on it. |
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| Vigilante |
| From what i remember from first year economics, oligopolies produce below the socially efficient quantity (which accounts for externalities). |
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