Question 1 Read the following case study and answer questions that follow: OPEC considers lowering production to aooount for oil reserve releases By GRANTSMI'TH, SALMA El. WAHDANYAND DEBJIT CHAKRABDHTY on IHEHEDZI {Bloomberg} CIPEC and its allies may reevaluate plans for reviving oil supplies if the world's four largest consuming countries go ahead with a coordinated release of their strategic petroleum reserves. India became the latest major consumer to contemplate deploying its stockpiles, potentially assisting the U.S., Japan and China in a move to dampen the inflationary threat of higher energy costs. The U.S. has urged fellow consumers to tap reserves after crude prices hit a seven-year high. But the potential move pits them against the OPEC+ coalition - led by Saudi Arabia and Russia - for control over world oil markets. \"Such a move would potentially raise the stakes in the oil poker game and could produce new strains in the bilateral relationship between Washington and Riyadh," said Helima Croft, chief commodities strategist at FIEIC Capital Markets LLC. The 23-nation alliance already rebuffed calls from U.5. President Joe Biden and others earlier this month to speed up the return of supplies halted during the pandemic. Delegates said that even the modest production increase they have penciled in may now be re-evaluated when the group meets next wee k. Source: lift 5: www.worldor'l.com news 202 I 2 o ecconsr'derslowerin productionto-occount{or-oiI-reservereleoses a) Interpret the meaning of, and explain an oligopoly. {Marks 5} b} Evaluate the characteristics of an oligopoly. [Marks 5 } c) With reference to the above case study, explain how cartels work and provide reasons for their failure. {Marks 1D} d} Assess price leadership and kinked demand curve model in oligopoly. [Marks 25] Question 2 In economic theory, perfect competition occurs when all companies sell identical products, market share does not inuence price, companies are able to enter or exit without barrier, buyers have perfect or full information, and companies cannot determine prices. a) Explain the different possible short run equilibrium positions of the rm under perfect competition. {Marks 20} b} Make a comparison between monopoly and perfect competition. Use relevant examples in your discussion. [Marks 25}