Self-interest makes cartels unstable for all of the following reasons except which one?
A) Each firm has an incentive to be the whistle-blower.
B) Each firm has the incentive to produce more than the agreed upon quantity.
C) Each firm has the incentive to lower their costs by producing less than the agreed upon quantity.
D) Each firm has an incentive to be the first to report and confess cartel behavior.
C) Each firm has the incentive to lower their costs by producing less than the agreed upon quantity.
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If a corporate bond with a face value of $1,000 pays yearly coupon payments of $40, what is the coupon rate?
A) 2.5% B) 4% C) 25% D) 40%
The single most important reason for Canada's seeking a free trade agreement with the United States was to
A) ensure its access to the U.S. market. B) ensure its ability to join NAFTA. C) harmonize its environmental laws with the United States. D) avoid international outsourcing in low wage countries. E) ensure the continuation of its social programs.