Author Question: Cartels are likely to be better able to prevent their members from cheating on an agreement: the ... (Read 332 times)

vHAUNG6011 · **on:** Jun 30, 2018

Cartels are likely to be better able to prevent their members from cheating on an agreement: the greater the number of members in the cartel.
a. the fewer the number of members in the cartel.
b. the greater the number of members in the cartel.
c. the greater are the differences in production costs across member firms.
d. the greater are the differences in demand projections across member firms.

Question 2

Which of the following is an example of incomplete information?
a. A seller losing out on profits because the market price rises above the pre-contracted price.
b. An insurer refuses to bear the complete cost of a treatment.
c. An insured car driver driving carelessly on the highway.
d. A new household appliance starts malfunctioning after two weeks.