Sarah earns $40,000 per year working for a large corporation. She is thinking of quitting this job to work full time in her own business. She will invest her savings of $50,000 (which currently has an annual 10% rate of return) into the business

The market reliably allocates workers among jobs based on their attitudes toward risk, placing workers more willing to bear risk in riskier jobs

Indicate whether the statement is true or false

Collusion is more likely to occur when

A) there is fear of punishment for not colluding. B) there is a known finite time horizon. C) there are large gains to be made by cheating on an agreement. D) the game lasts only one period.