Cartels are difficult to maintain because: a. there are ...

[dalyningkenk]

Cartels are difficult to maintain because:
 a. there are generally few barriers to entry in oligopoly markets.
  b. firms have a strong private incentive to cheat on agreements.
  c. it is difficult to enforce a cartel agreement.
 d. both (b) and (c).

Question 2

Suppose in the market for used cars, buyers would be willing to pay 9,000 for a car in good condition, while buyers would have to incur a cost of 3,500 to repair a car in poor condition. Assume a risk-averse buyer is aware that some of the cars are lemons, but is uninformed about the probability of a car being in good condition or otherwise. What price would this buyer, seeking only to minimize risk, be willing to pay for a car?
 a. 3,925
  b. 5,500
  c. 7,775
  d. 5,850

[macagnavarro]

Answer to Question 1

d

Answer to Question 2

B

[dalyningkenk]

TYSM

[duy1981999]

Gracias!