Two duopoly firms that sell an identical good form a cartel. They decide to collude and fix the price of their good. In this prisoners' dilemma type situation, the likely outcome is
A) both will cheat.
B) neither one will cheat.
C) only one will cheat.
D) It is impossible to say.
Question 2
If a Lorenz curve for a country's income bows more rightward over time, then the country's
A) income is increasing.
B) income is decreasing.
C) income is becoming more unequally distributed.
D) income is becoming more equally distributed.
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