QUESTION 2 OPEC set production quotas such that prices stay reasonably low OA. Because they have plenty of money B. Because they fear getting into a war with each other O c. To prevent the proliferation of substitute products OD. Because poor nations would not be able to afford the oil if priced too high QUESTION 3 According to Porter, an industry with low barriers to entry A. Should be avoided B. Will typically be hypercompetitve O c. Will be expensive to get into D. Will probably be an industry in decline QUESTION 4 Rivalry tends to be high among competitors UNLESS A. There are many competitors of roughly the same size and market position B. Exit barriers are high O c. There are high fixed costs creating incentive for price cutting D. The industry is young and in a fast growth stage 2 points Save Answer 2 points Save Answer 2 points Save Answer