OPEC & Cartels
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Introduction to OPEC
Monopoly Diagram
Marginal Revenue (MR)
Marginal Cost (MC)
Average Total Cost (ATC)
Full Diagram
OPEC's Decision
Alternative Views
References
Analysis Diagram
Let us analyze using a diagram how OPEC, a monopoly, would set oil prices
MC = Marginal Cost
ATC = Average Total Cost
MR = Marginal Revenue
D = Demand, AR= Average Revenue