Question 5.

1. There are 5 close examples of oligopoly firms operating in Malaysia now; Petronas Dagang, Caltex, Petron, Shell and BP Petrol. They are involved in the Petrol and Diesel Retailing Business. How do these firms operate and act to justify that they are oligopolies?
2. Why monopoly and oligopoly firms are not producing goods and services at optimum level of output?
3. OPEC is said to be an example of oil and gas business operating as CARTEL; as depicted in The Cartel Theory. Do you agree or disagree with the above statement? Support with your arguments?
4. Why government needs anti-trust law in our land?

14 marks.