The firm that cheats in a cartel receives a higher profit because it suffers only a fraction of the loss caused by the lower product price

A learning curve may be expressed as a relationship between the labor per unit (L) and the cumulative number of units produced (N)

Which of the following learning curves exhibits a faster reduction in cost of production due to learning, (1 ) L = 10 + N-1 or (2 ) L = 10 + N-0.5? A) Learning curve (1 ) B) Learning curve (2 ) C) Curves (1 ) and (2 ) exhibit the same rate. D) We cannot determine the rate of cost reduction without knowing the value of N.

Suppose a lottery ticket costs $1 and the probability that a holder will win nothing is 90%. What must the jackpot be for this to be a fair bet?

a. 10 b. 100 c. 1,000 d. 10,000