Category: the results are likely to be very sensitive to factors that determine the capacity expansion
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it says that in time OPEC is affected by the capacity decision. Economic Modelling is arbitrarily fixed circular reasoning ability of OPEC. Expansion of capacity should endogenize and when they are
the capacity level is dependent upon the long term and is affected by it and not the short term. Capacity utilization is the target which according to Gatley is the second factor. Any change to this factor means a direct effect upon the price change. The last factor is about the price change and its…