The diamond/water paradox states that things with the ________ value in use frequently have ________ value in exchange.

Refer to the scenario above. Which of the following is likely to be true in this case?

A) A unique Nash equilibrium will occur. B) A socially inefficient equilibrium will occur. C) Multiple equilibria will occur. D) A dominant strategy equilibrium will occur.

What do cooperative firms do if they make a profit?

A) Cooperatives never earn profits, so this issue does not occur. B) Cooperatives must pay their profits to the federal governments as a windfall profit tax. C) Cooperatives must keep half of the profits and return the other half to their members. D) Cooperatives generally return the profits to their members as a dividend.