A market for a product for which demanders are willing to pay more than costs of production may not arise because of:
a. high transactions costs.
b. strict price controls.
c. the inability of producers to gain economies of scale.
d. foreign countries dominating a domestic market for a product.
Question 2
Appendix: An incentive-compatible revelation mechanism is
a. self-enforcing
b. always multi-period
c. too complicated to influence decisions
d. prevalent in vertically integrated businesses
e. not adopted by franchise businesses
