(a) Which of these is a good example of a cartel? Select one or more: a. Organiz
ID: 1104591 • Letter: #
Question
(a) Which of these is a good example of a cartel?
Select one or more:
a. Organization of the Petroleum Exporting Countries
b. European Union
c. Microsoft Inc.
d. National Rifle Association
e. National Basketball Association
(b) Select the statements that are true.
Select one or more:
a. In an inverse demand function price is expressed as a function of the quantity sold.
b. In an inverse demand function quantity sold is expressed as a function of the price.
c. In a demand function quantity sold is expressed as a function of the price.
d. In a demand function price is expressed as a function of the quantity sold.
Explanation / Answer
A. Cartel is formed when two few more firm collude and control the market in order to maximise total profit.
Since organisation of petroleum exporting country (OPEC) which is an example of cartel. This cartel havs been made by colluding petroleum exporting country for maximising total profit.
Hence OPEC is an example of cartel.
Correct answer is option a and option c.
Microsoft Inc. Is also an example of cartel because few firms by colluding make Microsoft Inc. For maximising the profit.
Hence option a and c are correct answer.
(b)
Option a and c are correct. This is because in demand function quantity demand is expressed as the function of price and in this quantity demand is a dependent variable while price is independent variable. The opposite of this case is inverse demand function.
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