An oligopoly using a maximin strategy must believe that the losses from underestimating a competitor's skill are worse than those from overestimating it

The Gulf Cartel and Sinaloa Cartel are the two major cartels in illegal drug trade in Mexico. Although, each of these cartels are better off sharing the market, they have an incentive to try to take the entire market. In which of the following ways is cheating among these cartel members dealt with in this region?

a. Through government taxation policy b. Through legally enforceable contracts c. Through restrictions on the supply of inputs used by the firms d. Through output quota and price ceiling e. Through violence and drug wars

Other things the same, a decrease in the real interest rate

a. decreases the quantity of loanable funds demanded. b. increases the quantity of loanable funds demand c. shifts the demand for loanable funds to the right. d. shifts the demand for loanable funds to the left.