Even if an insurance company holds a substantial reserve to pay claims, the algebra of probability shows that its funds are likely to be exhausted in payouts

Which of the following increases the likelihood that a group of sellers can increase profits as the result of collusion?

a. the presence of a large number of firms in the industry b. intense quality competition among firms c. low barriers to entry into the industry d. a stable demand for the product

You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.  ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50Which project yields the greatest return, regardless of whether a boom or a recession occurs?

A. A B. B C. C D. D