Suppose you have $400 to invest at a nominal interest rate of 5 percent. If the inflation rate is 2 percent, then the real return on your investment is approximately

In a cartel

A) each firm has an incentive to decrease its own production below the level set by the cartel. B) the firms' marginal cost equals the price set by the cartel. C) each firm has an incentive to lower its price below the level set by the cartel. D) each firm has an incentive to raise its price above the level set by the cartel.

The only item which would be consistent with a decreased likelihood of cartel formation for production of a product is

a. patent protection b. price inelastic demand c. many producers d. income elastic demand e. limited market entrance