Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 26, Problem 12E
To determine
To state:
The market structure of the cocaine industry in South America.
Predictions about the cocaine business based on the market structure.
To explain:
The absence of wars among the families.
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Students have asked these similar questions
The South American cocaine industry consists of several “families” that obtain the raw material, refine it, and distribute it to the USA. There are only about three large families, but there are several small families. What market structure does the industry most resemble? What predictions based on the market structures can be made about the cocaine business? How do you explain the lack of wars among the families?
OPEC is a petroleum cartel, a group of oil producing countries whose objective is to coordinate and unify petroleum policies. What type of market structure is a cartel?
Cartels are the group that is created by the firms in the market to gain control over the prices and the entire goods market.
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