A very large international cartel that is allowed to exist, that is allowed to set prices, which every nation is forced to pay regardless is OPEC. According to OPEC (2017) , " OPEC is a permanent intergovernmental organization of 14 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries". OPEC is a cartel that regulates oil prices so that consumers get a fair price. Supply is regulated from these oil producing countries in order to regulate the equilibrium price or market price. Recently we saw prices decreasing until we had the Hurricanes and drilling ceased for weeks and supply decreased. All of these factors play a role in the market price of oil and OPEC regulates this activity. Cartels are generally illegal but in some cases are allowed to exists. Cartels violate Antitrust.

What are antitrust laws?

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Your understanding of cartels and OPEC is partially correctbut there are some important nuances to consider when discussing antitrust laws and their s... View the full answer