Question

A group of firms acting in unison is called a(n) ___________. It can be difficult for this group to maximize joint profits because____________. cartel; of the tension between cooperation and self-interest duopoly; each firm could increase its profit by producing less output than the agreed-upon amount oligopoly; each firm could increase its profit by producing more output than the agreed-upon amount monopoly; it is difficult to convince each member of the group to produce more output

Answer 1

• cartel
• each firm could increase its profit by producing more output than the agreed-upon amount monopoly

Step-by-step explanation:

The Organization of the Petroleum Exporting Countries (OPEC) is probably the most famous international cartel in the world. They set limits in their petroleum production in order to increase oil price or keep oil price artificial high.

But sometimes even they have problems deciding on what limits they should establish. When a member country needs more money due to an specific event, like Ecuador that is suffering from a recession, the other countries will not be willing to allow Ecuador to export more oil, but Ecuador might decide to do it anyways. The same happens when conflicts arise in the Middle East and some countries want to sell more oil than what they are allowed.