ECON 101 Final: Final Exam Study Guide

• School: U of M
• Department: Economics
• Course: ECON 101
• Professor: William James Adams

Document Summary

Opec (organization of petroleum exporting countries)- similar to cooperatives: speak on behalf of individual firms (coordination), but not like cooperatives: members do not put their oil at the disposition of opec. Consolidation by rockefeller in early days: 80-85% of refining. Bilateral monopoly graph- vertical integration of two monopolies: since it resulted in higher profit for producer, greater quantity produced and lower price for consumer, this provided incentives for mergers and collusion. Hence look at sellers" concentration and effect on price of gasoline (also: premium: regular: colony time: countries under colonial rule: concentrated structure at the production, refining, production, period of decolonization (vertical integration and disintegration) Government does not have the expertise (mncs have upper hand: actors have different goals (hard to facilitate discussion) Joint venture between gm and toyota: gm learning how to produce small cars more efficiently, there was also voluntary import restraints on jap cars (cheaper)