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A Cartel is a company with a very unique position with the opportunity to use a simple model to optimize price. It is an organization with a very desirable position in the world; very few companies can experience the opportunity to determine their own prices without loosing significantly market share. OPEC is considered a Monopolistic-Cartel type of organization.
Firm's demand curve
This type of structure has the advantage that while increasing oil prices may shift the demand curve. The model allows backstop technology and tariffs on oil imports; therefore, the imposition of tariffs to importing countries will reduce OPEC prices without affecting domestic prices.
OPEC
For years the Organization of Petroleum Exporting Countries (OPEC) can be use as an example of a successful cartel. OPEC raised the price to consumers, made a fantastic amount of money, and has survived for years. Today, in United states it can appreciate that base on political swift the organization has benefit......
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Title: Market Structure Cartel
Approximate Word Count: 803
Approximate Pages: 4 (250 words per double-spaced page)
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