The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. If mushrooms sell for $10 per bushel, and Moe chooses the profit-maximizing quantity, he will gather:

An insurance policy is a contract that:

a. benefits the parties if they have the same degrees of risk aversion. b. benefits the parties if both of them are risk neutral. c. benefits the parties if they have different degrees of risk aversion. d. benefits the parties if either of them is risk neutral.

Cartel agreements are more likely to succeed if: a. there are a large number of firms in the industry producing identical products. b. there are few firms in the industry producing identical products

c. there are a large number of firms in the industry producing differentiated products. d. there are a few firms in the industry producing differentiated products.