I am considering loaning my brother $10,000 for one year. He has agreed to pay 10% interest on the loan. If I don’t loan my brother the $10,000, it will stay in my bank account for the year, where it will earn 2% interest. What is the opportunity cost to me of the loan to my brother?

Winning a common-value auction is

a. An indication that your valuation may have been spot on b. An indication that your valuation may have been too pessimistic c. Indicates that your valuation may have been too optimistic d. None of the above

The Organization of Petroleum Exporting Countries is an example of: a. a price leadership system

b. a trade group whose members have yet to influence the world price of oil, despite repeated attempts to collude. c. a successful monopoly. d. a periodically successful cartel.