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Author Question: Cartels usually succumb to divisive forces caused by: a. stringent enforcement of a cartel ... (Read 16 times)

oliviahorn72

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on: Jun 30, 2018
Cartels usually succumb to divisive forces caused by:
 a. stringent enforcement of a cartel agreement.
 b. the similarity of production costs across member firms.
  c. members cheating by giving secret discounts.
 d. insufficient profits compared to independent operations.

Question 2

Suppose the probability of a near-new car being good is 0.4 while its probability of being a lemon is 0.6 . If risk-neutral consumers are willing to pay 14,000 if the car is in good condition and 8,000 if it is a lemon, a risk averse buyer who knows those probabilities would be willing to pay 10,400 for the car.
  Indicate whether the statement is true or false


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zhanghao

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

F


oliviahorn72

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

adammoses97

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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