The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a and trade is possible, which of the following points are possible equilibria?

How much is the interest rate on a bond that has a face value of $1,000, a selling price of $800, and pays $80 interest?

What will be an ideal response?

Suppose that Bill and Ted use a tit-for-tat scheme to encourage cartel pricing and Bill chooses the low price for a single month. Bill and Ted will deviate from cartel pricing for two months.

Answer the following statement true (T) or false (F)