The payoff matrix below represents hypothetical profits that could be earned by two milk sellers who have formed a cartel. each seller must decide if they want to cheat or not to cheat on the production quotas in the cartel agreement. use the payoff matrix to answer the questions below. does either member have an incentive to cheat? heifer's gold will cheat, but milky moo will not. no, neither has an incentive to cheat, yes, both will cheat. milky moo's will cheat, but heifer's gold will not. how does cheating impact the cartel members? cheating all the cartel members by increasing their profits. cheating does not impact the other members. cheating hurts the members who do not cheat by decreasing their profits.

Ail industries uses activity-based costing to assist management in setting prices for the company's three major product lines. the following information is available: activity cost pool estimated overhead expected use of cost driver per activity cutting $1,000,000 25,000 labor hours stitching 8,000,000 320,000 machine hours inspections 2,800,000 160,000 labor hours packing 960,000 64,000 finished goods units compute the activity-based overhead rates. (round answers to 2 decimal places, e.g. 12.25.)

Costs of production that do not change when output changes.question 17 options: total revenuefixed incometotal costfixed cost

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.