Practicing Success
Practicing Success
CUET Preparation Today
| Read the following statements - Assertion (A) and Reasoning (R): Assertion: OPEC closely resembles an example of collusive oligopoly. Reasoning: OPEC consists of few oil producing companies working together as a cartel. |
Both Assertion (A) and Reasoning (R) are true and Reasoning (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reasoning (R) are true and Reasoning (R) is not the correct explanation of Assertion (A). Assertion (A) is true but Reasoning (R) is false. Assertion (A) is false but Reasoning (R) is true. |
| Both Assertion (A) and Reasoning (R) are true and Reasoning (R) is the correct explanation of Assertion (A). |
| OPEC is Organization of Petroleum Exporting Countries. In collusive oligopoly, firms collude with one another and form cartel mutually taking price and output decisions. OPEC is an international cartel consisting of 13 oil producing firms who fix supply quota and market price of oil. Significance of OPEC is decreasing due to emergence of American oil companies. |
