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282. Why is the oil cartel the best-known form of economic conspiracy?

Today, perhaps the best known form of conspiracy is the oil cartel. Why?- Notorious and globally persecuting- Widespread attention given to the activities of the Organization of Petroleum Exporting Countries (OPEC)The whole world humbly waits for any price hike, bow its head, and says to the oil cartel, Your wish is my command.Chapter 3282. Why is the oil cartel the best-known form of economic conspiracy?

The organizations authority is the omnipotent conference, made up of high-level representatives of the member governments.In late 1950s, the amount of oil produced worldwide was greater then the demand.The price of oil, which was controlled by the oil companies, dropped and with it dropped the amount of money the oil companies paid the oil-producing nations,Nothing happens w/o purpose, so OPEC cartel was formed in reaction to this drop in payments.Chapter 3283. How does oil cartel work against social welfare?

In the 1970s, as oil supplies in non-OPEC countries were reduced, the organization raised the price of oil, and held the whole universe captive. Simply, oil cartels objective is to set production ceilings that specify how much oil may be produced by each member country.Chapter 3249. What are the ethical practices in persuasive advertising?

Hard sell or Persuasive advertising appeals more to the emotions, that it pushes the consumers to be more impulsive when buying.Chapter 21250. Is it unethical to play upon the human weaknesses and vulnerabilities?

Persuasive advertising deviates from social responsibility when it exploits the buyers by means and at any price for the sake of bigger sales.Chapter 21251. When do infomercials become untruthful?

- One way is through stating false statements or misleading exaggerations.- Indirect misrepresentation of a product or service by distorting some details.- Making an informative ad a deceptive advertising.Chapter 21252. Are there half-truths?

There are no half-truths and no gray areas.If the information is not true, it is falseFalse advertising is dishonestly, plain lying or cheating and social irresponsible.Chapter 21268. What is the scope of antitrust laws?

Price fixing between competitorsAbuses of market power by a monopolist or dominant firmAgreements between competitors to restrict output (cartel)Chapter 22269. What is a price-fixing scheme?

Either declare a price war (that is, lower down prices) or agree to fix prices.Chapter 22270. Is price-fixing against the law and moral principles?

Hardcore, clear or blatant, price fixing between competitors is illegal and is subject to criminal prosecution.The antitrust prohibition on fixing prices also extends to agreements between competitors in price-related matters such as discounts, rebates, commission and credit terms.General rule is that we cannot just impute illegal collusion on anybody w/o substantial evidence.Chapter 22271. What is the so-called pricing process?

It requires business to effectively calculate the resources and needs, the force of supply and demand.Business has to enforce the best use of scarce resources available for supplying demand, for failure to calculate the supply and demand is a manifestation of the organizations bad practice and damaging effects will immediately be seen in prices.Chapter 22271. What is the so-called pricing process?

If prices are distorted or deliberately manipulated, then a disorder in the market may be created which eventually may lead to the decline of production and consumption.Chapter 22