A market for a product for which demanders are willing to pay ...

[bobthebuilder]

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

[Hdosisshsbshs]

Answer to Question 1

a

Answer to Question 2

a