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A newspaper article referred to problems OPEC was having in affecting the world price of oil. The article noted that a key problem was OPEC's "inability to enforce internal production targets." An executive at an oil company was quoted as saying: "Those [OPEC countries] crying about too much oil on the market, they could cut it off if they wanted to."
a. How does OPEC try to affect the world price of oil? What role do "internal production targets" play in its strategy?
b. Explain what the oil executive means by the quoted statement. If countries complaining about too much oil being supplied could cut if off if they wanted to, why don't they?
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