Episode 9 – Milton Friedman Speaks – The Energy Crisis (Podcast)
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How to Form a Cartel in Oil
Sodi arabia and cuate have large flexibility in the amount oil that they are willing to produce. Unless you can keep down the amount available, there's no way in which you can raise the price. The higher price will give other people an incentive to produce substitutes. But it takes time. If you're going to produce other oil wells, you have to drill oil wells. You have to explore im you have to ope similarly with other substitutes.
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