Answer to Question #292810 in Economics for Hafsa

Question

It has often been said that OPEC (Organization of Petroleum Exporting Countries) operates as a cartel and is able to set petroleum prices by restricting supplies. Do you agree? Explain.

Answer 1

The Organization of the Petroleum Exporting Countries is a cartel consisting of 13 of the world's major oil-exporting nations. OPEC aims to regulate the supply of oil in order to set the price on the world market.

So, the statement is true.