REFERENCES:

https://www.opec.org/opec_web/en/data_graphs/330.htm

According to current estimates, 79.4% of the world's proven oil reserves are located in OPEC Member Countries, with the bulk of OPEC oil reserves in the Middle East, amounting to 64.5% of the OPEC total. OPEC Member Countries have made significant additions to their oil reserves in recent years, for example, by adopting best practices in the industry, realizing intensive explorations andenhanced recoveries. As a result, OPEC's proven oil reserves currently stand at 1,189.80 billion barrels.

Question:

How does each of the following conditions facilitate the creation and stability of OPEC as a cartel? Explain your answers in 250 words. (10 marks)

a)High barriers to entry

b)An identical product

c)Similar costs