Moral hazard refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off

A cartel is a collusive agreement among a number of firms that is designed to

A) expand output and lower prices but not to a predatory level. B) restrict output and lower prices to a predatory level. C) restrict output and raise prices. D) expand output and raise prices. E) expand output and lower prices to a predatory level.

If marginal revenue is less than marginal costs

A) production should be decreased. B) production should be decreased and profits will grow. C) production should be decreased and losses will decrease. D) all of these choices are possible.