Problem-
You have been contracted by an economic consulting firm to determine the economic structure and possible future actions of OPEC, the Organization of Petroleum Exporting Countries. Using the Library, the Internet, and your course materials, find websites that offer this information and answer the following questions (Perloff, 2007).
• Explain the difference between a monopoly and an oligopoly, and a cartel.
• Provide an example of a monopoly, an oligopoly, and a cartel.
• Discuss the welfare effects of monopolies and oligopolies.
• How does game theory explain the interactions of firms within oligopolies and cartels?
• Using your own words, discuss the economic purpose of OPEC. What has happened to oil prices over the past five years?
• Based on your answers to the above questions, synthesize the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year.
• Summarize your research findings in 2 to 3 pages ONLY.
Additional Information-
The problem related to Economics and the problem is about an economic consulting firm specializing in economic structures. Markets such as cartel, oligopoly and monopoly have been discussed in detail. These problems also explain about firms in each type of market react and interact.