Explaining cooperative behaviour in crude oil market

Reference no: EM1316050

I. How would you characterize the market for crude oil production? Explain your answer.

II. Explain the two kind of cooperative behaviour or models that may exist in this kind of industry. Enumerate the differences between the two models, including the conditions for success and failure for each type of models.

III. Explain the long run profit behaviour of firms in this kind of industry.

Note: You must explain your answer in detail using economic theory and principles for maximum point.

Reference no: EM1316050

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