CHAPTER 10

1. In this scenario, I consider the oil corporations to be studying a cartel since I am confident that
before the prices were released to the public, they had to go through several processes and they
studied this before making such a choice. If there is a collision, there is an imperfect collusion
since it will be probed by the persons who work for the government, and those who engage in
the collusion will face serious consequences.
2. Through rules and regulations, the government can have an impact on the decisions made by oil
firms. Taxes and subsidies are other tools they can use to influence oil prices. But in the end, the
market's supply and demand determine the price of oil, and the government might not have
perfect control over this.