CONFUSING ABOUT THIS QUESTION THANKS VERY MUCH! In recent years, oil prices have
ID: 1132177 • Letter: C
Question
CONFUSING ABOUT THIS QUESTION THANKS VERY MUCH!
In recent years, oil prices have been quite unstable despite there being many oil producers worldwide.
Which of the following statements is true?
The oil market is not perfectly competitive because there are high barriers to entry.
The oil market is perfectly competitive because all the resources are essentially mobile.
The oil market is not perfectly competitive because there are many sellers and few buyers.
The oil market is perfectly competitive because the oil is not homogeneous.
The oil market is perfectly competitive because it is easy to exit the market.
The oil market is not perfectly competitive because there are high barriers to entry.
The oil market is perfectly competitive because all the resources are essentially mobile.
The oil market is not perfectly competitive because there are many sellers and few buyers.
The oil market is perfectly competitive because the oil is not homogeneous.
The oil market is perfectly competitive because it is easy to exit the market.
Explanation / Answer
Correct option is "The oil market is not perfectly competitive because there are high barriers to entry".
Oil industry has few suppliers and form cartel of OPEC and have high entry costs because it needs high initial investment in the form of physical capital.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.